Economy the chart

Two years of house prices defying all the forecasts

Andy Fyers
Mon, 20 Dec 2021

Two years of house prices defying all the forecasts
The median house price in Auckland has increased from $1m to $1.3m during the pandemic.
Andy Fyers
Mon, 20 Dec 2021
"Our baseline scenario assumes house prices will fall by around 9% over the remainder of 2020."  That was Reserve Bank's assessment in its first monetary policy statement (MPS) once the impact of covid-19 on New Zealand had become clear.Issued in May 2020, a time of immense economic uncertainty, it saw prices falling as a result of "lower population and household income growth" and in spite of "lower interest rates, and the easing of loan-to-value ratio restrictions." The latter two being measures that the...

Not convinced yet?

Subscribe to our Daily News Update free newsletter.

Markets market close
F&P Healthcare drags NZX 50 lower
Dan Brunskill | Wed, 25 May 2022

Markets were also surprised by RBNZ's plans to keep hiking the official cash rate until it hit 4%.

Homeowners to feel pain next year when home rates hit 6%
Brent Melville | Wed, 25 May 2022

There's no need for leveraged homeowners to panic as interest rates ratchet up, but stress could start being felt downstream as more rate hikes seem on the cards.

Reserve Bank will hike but not as much as it says
Rebecca Howard | Wed, 25 May 2022

The Reserve Bank of NZ now expects the official cash rate to peak at 3.9% in June 2023, up from its February view that it would peak at 3.4% in September 2024.

Partner content
Small business lessons for attracting and retaining staff

Employers battling through the ‘Great Resignation’ are now faced with the ‘Great Brain Drain’.

Partner content
People leaders are key to wellbeing but still need help

One in three people say they have experienced an issue with an unsupportive manager