Housing market: 6 factors to consider

In his latest report on the coronavirus, Alexander says he does not believe the housing market will lead to a long period of major price drops. 

"Is it likely that the weakness in our economy set to roll through over the next six months or so will cause widespread house declines? Will all those people who incorrectly predicted a big price crash in 2008, 2009, 2010 and 2011 finally get a forecast right? Probably not."

He adds: "Our housing markets around New Zealand will certainly be weaker than they otherwise would have been for a variety of reasons. Higher unemployment will have an impact. But in the absence of high interest rates the main thing that will happen is sharply reduced sales as we put big financial decisions on hold."

Alexander lays out six key factors to consider as the housing market heads into a downturn.