Summary: Data out overnight shows house price inflation actually accelerated in January, despite all the talk of a credit crunch, a surge of new listings and higher interest rates. US markets are quiet and the focus is on wage and jobs data for the December quarter here later this morning.
Last gasp? CoreLogic reported this morning house value inflation actually accelerated in the month of January to 2.1% from 1.9% in December, which meant annual inflation stayed up at 27.5%. Average house values rose to $1.028 million nationally, and are now up over $1m in the likes of Porirua and Tauranga. Average values are approaching $1m in Lower Hutt, Upper Hutt, Napier and Hastings. However CoreLogic thinks headwinds such as tighter mortgage lending rules and higher interest rates will eventually weigh on the market this year.
Cream rising Wholesale dairy prices rose another 4.1% overnight to a fresh six-year high, bolstering forecasts of a record payout this season of towards $9.50/kg (globaldairytrade)
No rate hike? The Reserve Bank of Australia announced as expected the end of its QE programme (money printing to buy government bonds so as to lower longer term interest), but disappointed some by not saying it would hike its rates later this year. (The Guardian)
‘Just apply somewhere else’ Credit checker Centrix reported this morning that mortgage applications in January rose to a seven-month high in January, in part due to the success rate for applications falling from 39% in October to 27% in January as banks implement new law requiring more stringent credit checks.
Fresh on BusinessDesk this morning
Paul McBeth reports from National’s caucus retreat in Queenstown.
Henry Burrell dives deep into the OECD survey on New Zealand to look at its recommendations for regulatory reform on tech and IT.
David Chaplin writes his weekly column on talk Australian fund managers may buy KiwiWealth.
