NZ: Housing market continues to experience volatility - ANZ

According to analysts at ANZ, New Zealand’s housing market is diverse by region but continues to experience volatility, partly as a result of the foreign buyer ban, and it will take some time to gauge where the broad trend is setting.

Key Quotes

“The RBNZ eased loan-to-value ratio restrictions this month, which will provide a boost, though it is not expected to be large. And interest rates remain low, with recent small declines in mortgage rates expected to provide a lift.”

“Population growth also remains supportive, but pent-up demand is not building as it once was. And importantly, headwinds are acting on the market, including bank prudence, investor wariness and affordability constraints – which are expected to see the market remain contained. A more challenging outlook for credit in light of proposed increases in capital requirements may also weigh.”