Migration drop will slow housing market
Latest immigration statistics reveal migration inflows have dropped rapidly since the start of the year, from 13,000 in January, to below 5000 in June.
Monday, July 23rd 2007, 1:32PM
by The Landlord
There was a monthly net inflow of 590 people in June, taking the annual total to 10,078 from 10,682 in May.
ANZ Bank economists predict that given the rapid easing in annualised migration inflows, coupled with the significant tightening in financial conditions over the past six months, activity in the housing market will slow over the remainder of this year and into 2008.
“There are already early signs that the housing market is softening, with house sales down 12.5% in the past three months, and recent monthly house price increases stabilizing”, ANZ reports in an economic release this week.
The Reserve Bank expects migration to stabilise around current levels before increasing to around 13,000 per annum.
| « Auckland property prices steady in July | Housing market still growing despite rate hikes » |
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