Property values expected to remain stable in 2018
The latest property market report from Core Logic (or QV as it's also known) has just been released, which you can download here.
The head of research at Core Logic, Nick Goodall, is of the opinion that, although the expected 2018 value increase slowdown may already be underway, a drop in values is not expected.
A few factors back this up, such as NZ’s construction industry, which faces a continued challenge in creating enough affordable houses to keep up with population growth. Then there's the net migration numbers remaining near an all-time high, with a strong labour market helping to match those high numbers of job seekers with actual jobs.
Unemployment is currently at 4.5% -- the best performance in almost a decade. And let's not forget about the low interest rates. Although banks have tightened their lending standards, low interest rates allow a potential home owner to borrow a higher sum.
The combination of these varied but related aspects continues to keep a stable foundation for values.
Buyers, though, are less anxious about getting into the market because they've realised that waiting for the “right one” (and continuing to save more while doing so) can pay off with stable house values.