In view of analysts at ANZ, regional divergences remain a key theme in New Zealand’s housing market as Auckland house price growth slipped further into negative territory in June.
Key Quotes
“House price inflation in the capital is still high but falling back in line with the rest of the pack. Canterbury inflation has made a small run back into positive territory and some of the small centres, like Manawatu-Whanganui and the deep south, are seeing prices tick up again.”
“House price inflation isn’t expected to roll over at the national level as OCR cuts should help keep mortgage rates under pressure, LVR restrictions will likely be loosened gradually and supply shortages remain.”
“Conversely, several headwinds are capping the upside: banks are cautious and LVR limits remain binding; investors are wary of policy changes; and affordability constraints are biting.”
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