Bank of New Zealand (BNZ) stories
Mortgage repayments now absorb nearly half of household income, as record house prices and weaker wages push affordability to fresh lows.
Sales volumes and price growth are easing, with REINZ figures showing weaker January activity and tighter lending weighing on buyers.
Rising rates and tighter lending rules are likely to cool demand, with CoreLogic warning some fixed-rate borrowers could soon see repayments double.
First-home buyers are feeling the pinch as tighter lending rules help push New Zealand’s median house price down 1.6% in December.
First-home buyers are being refused finance after going unconditional, as tougher bank rules and lending checks squeeze borrowing.
Rising rates and tighter lending rules could cool New Zealand’s housing boom in 2022, after values topped GBP £1m nationally for the first time.
Buyers are getting more choice as supply improves, even though New Zealand house prices hit fresh records in November and growth begins to ease.
Tighter credit and more listings are likely to keep house price gains easing as annual growth slips for the first time since August 2020.
Record rents are keeping first-home buyers in the market, with mortgage payments still cheaper than paying to rent for many Kiwis.
New Zealand’s median house price climbed by NZD $100,000 in October, with 10 regions hitting record highs amid tight supply and strong demand.
Rising mortgage costs and tighter lending rules are expected to cool the market, even after values posted their first monthly acceleration in six months.
Higher mortgage rates and tighter lending rules are already cooling New Zealand’s housing market, with investor demand slipping further.
Property values rose 1.4% nationally in September, but activity is easing as tighter lending and higher rates weigh on buyers.
Higher mortgage costs are unlikely to deter first-time buyers while rents keep climbing and remain above many monthly loan repayments.
Homeowners face higher rebuild insurance bills as labour and materials shortages pushed residential construction costs up 2.2% in June.
Westland is the country's most affordable area, with house prices at just 3.2 times income and rent and deposits well below national norms.
Property deals are being slowed by fresh restrictions, but Colliers expects demand to recover quickly once alert levels ease.
Affordability pressures are starting to bite, with Hamilton and Rotorua both posting quarterly falls after a rapid run-up in values.
Nearly all New Zealand homes sold for a profit in the June quarter, as record-low mortgage rates and tight listings drove gains.
Borrowers face higher repayments and tighter credit as rate rises, though lockdown likely postpones the Reserve Bank’s next move.
