New analysis by leading New Zealand economic consultancy Infometrics has found that the short-term rental accommodation (STRA) sector has a limited effect on rental prices and no significant effect on house prices across New Zealand’s major urban areas, with population and interest rates having the greatest influence on rents and house prices. Read

The housing market has been one of the key indicators of increasing stress for households over the last few months. After a mild but short-lived rally during early and mid-2023, buyer demand has softened again, as mortgage rates remain high and expectations of interest rate cuts by the Reserve Bank get pushed further into the future. Read

The stock of homes available for purchase on realestate.co.nz increased in February to its highest level since 2015, as more people listed their properties for sale. In the last five years, monthly new listing numbers onto the market have only been higher than February’s total... Read

Inflation is moderating, which is encouraging news after the highest rise in prices in three decades after the COVID-19 pandemic and associated supply chain issues, emergency stimulus, and high demand. Although the national inflation rate is regularly analysed and discussed, regional price changes a... Read

Wholesale interest rates fell sharply last week, with the two-year swap rate falling 29 basis points on 14 December. Rates are now sitting at a nine-month low, adding downward pressure to retail interest rates. Lower mortgage rates could potentially stimulate economic activity when the battle agains... Read

There’s little doubt the housing market has started to come back to life over the last few months. In this article, we examine the indicators showing the market’s pick-up and what’s been driving that recovery. We also look at how pronounced and persistent the pick-up might be, and we explore the implications for future monetary policy settings and residential construction activity. Read

House prices rose 0.6% in June according to the REINZ’s index, which was the first monthly increase since November 2021 after accounting for the usual seasonal pattern in prices. This result comes after nine months of significant migration inflows, which have led to increased speculation that the housing market could bottom out sooner than previously expected. Read

The Reserve Bank’s loan-to-value ratio restrictions on mortgage lending are set to be relaxed on Thursday, raising expectations of a little more activity in the housing market. But because house prices have risen so much further than incomes since the start of the COVID-19 pandemic, limitations to debt-servicing ability mean that getting a mortgage will not become more achievable for most prospective borrowers. Read

Movements in mortgage rates have been peculiar since the start of 2023. Despite the 50-basis point increase in the official cash rate in February, pressure on retail mortgage rates has generally been in the other direction – downwards. So, what’s going on, and what do current events mean for the future pathway for mortgage rates? And with low sales volumes, more distressed owners, and stubborn seller expectations, how will housing market outcomes evolve throughout the coming year and beyond? Read

Chief Forecaster Gareth Kiernan has penned Infometrics’ traditional Christmas Carol. Sung to the tune of Brenda Lee’s Christmas song “Rockin' Around the Christmas Tree”. Read