The latest mortgage data from the Reserve Bank of New Zealand (RBNZ) paints a worrying picture for the nation’s housing market. The latest RBNZ data on mortgage finance commitments shows that demand has already collapsed, with the value of mortgage commitments down 30% in the year to April 2022. This will place additional downward pressure on house prices, which have already fallen 5% nationally since November 2021. The RBNZ’s MPS said that it expects “house prices to fall by about 14% by early 2024”, suggesting an additional 9% decline from current levels. Thus, it offers a glimpse of what could be in store for Australia as we navigate our own housing correction.

Source: New Zealand Herald May 31, 2022 00:01 UTC