Housing – just like the NZX before the crash of ’87?

Housing – just like the NZX before the crash of ’87?
The highest rate of house building in 50 years is one factor leaning against current valuations. (Image: Getty)
Brian Gaynor
The booming housing market has been a major topic of conversation in recent years but the red-hot sector is now facing strong headwinds from inflation, rising interest rates and recent changes to the Credit Contracts and Consumer Finance Act (CCCFA).These boom conditions and recent headwinds are fairly similar to the issues faced by the NZX in early 1987. Despite this, most house buyers continue to believe that prices will never fall, just as most investors believed that share prices were bullet-proof 35 years ago.  Bank and non-bank...

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