ASB notes that “house prices have already fallen by more in this cycle than they did during the GFC. And with more rate hikes to come, house price expectations could test GFC lows”. House sales tumbled into the end of 2022 and house prices continue to fall”. “We maintain our house price forecast for a total fall of 25%, suggesting house prices have a further ~10% to fall in this cycle”. The Reserve Bank’s latest Monetary Policy Statement forecast ongoing interest rate increases, a recession, and a 23% peak-to-trough decline in New Zealand house prices.

Source: Stuff March 06, 2023 06:55 UTC