Two items of data in the past few days show the housing market is slowing quite rapidly.
Today we have the QV data which shows slowing in house price growth continues. What’s attention grabbing is that QV are now saying we could see flat or negative house price inflation in some parts of the country this year.
On Friday Auckland’s biggest real estate firm reported its January figures and they show house sales had crashed 41.5% in the 12 month period.
Meanwhile average prices were down 7.5% on a month-on-month basis, but were still up 8.9% over the year.
Added into this equation is that there is a rising stock of unsold houses. This suggests low migration and high mortgage rates are biting.
We expect the Real Estate Institute will put out its figures this week. We will be watching what spin they include to try and tell everyone the market is still chugging along just fine.
The evidence is firmly mounting showing there is a slowdown well underway.
Two items of data in the past few days show the housing market is slowing quite rapidly.
