Market correction? Don’t hold your breath.
While house prices did fall in April/May at the height of the level four lockdown, ASB’s latest Home Economics report describes that as a blip rather than the start of a new down trend.
In the report, Mike Jones, who is a senior economist at the bank, says the last four times New Zealand experienced or skirted economic recession, annual house price inflation went negative.
But this time appears to be different and there’s two key reasons why, he says.
One is the huge amount of stimulus unleashed to counteract the economic pain of lockdown - much of which found its way into the housing market.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
