Capital, which has been forecasting since January this year that falling house prices will force the RBNZ's hand, is now predicting New Zealand house prices will drop 20% by the middle of next year. "We were one of the first to forecast a significant housing downturn in 2022 when we made the prediction a year ago. The RBNZ recently indicated that house prices would become 'sustainable' if they were about 5% to 20% lower than they are currently. By the middle of next year, he thinks the impact of the housing downturn "will be painfully clear". "And we think house prices will be at the bottom of the RBNZ’s estimated ‘sustainable’ range.

Source: Stuff May 31, 2022 02:09 UTC