News & Research
Nov - Dec 2016 Monthly Property Market & Economic Update now available29 November 2016
This monthly report created by the CoreLogic NZ Research team covers the main economic factors that influence the housing market, and then looks at sales volumes, values, and active buyer types in both the national and main centre housing markets.
Some highlights of the November - December 2016 report:
- After peaking earlier in the year, net migration had appeared to ease, but is now increasing again, keeping pressure on housing especially in Auckland.
- The Reserve Bank dropped the OCR to a record low 1.75% in November. As expected, retail mortgage rates did not decrease in line with this. These low interest rates mean that banks are struggling to attract local deposits, which in turn means they need to look offshore for money, which is becoming increasingly expensive.
- The slowdown in values witnessed last month has continued, with quarterly growth easing to 3.3%. The previous lending restrictions reduced quarterly growth to 0% in early 2016, and this will possibly happen again over the summer months.
- The latest LVR restrictions have continued to reduce sales volumes. October was a particularly weak month nationwide with sales down 9% on September.
- First home buyer activity remains steady nationwide. This first month of Q4 has yet to show any significant decline in multiple property owner purchase activity.
- Auckland investors have yet to be significantly impacted by the latest LVR restrictions, in terms of their share of sales, which has levelled off at 43%.
To download the full report click here.