Little growth for the rest of this year expected

More investors and owner-occupiers moving into better homes are in the market drawn by low interest rates and house prices barely moving. First home buyers have retreated after being the strongest force earlier this year.

ANZ, the country’s biggest mortgage lender, and BNZ have downgraded their house price forecasts for the rest of the year.

The ANZ is now forecasting just 2.5% price growth while the BNZ has dropped its forecast to between 2-4%. For next year both the banks reckon there will be 5% growth.

ANZ says it revised its outlook because indicators of the balance between supply and demand continue have drifted drift sideways.