H/t and thanks to Tom for this article, in the comments here
- Confidence in the housing market is at its lowest point since 2007, says ASB.
- “Recent interest-rate rises, the steady increase in house prices and lending restrictions have all combined to create a growing mood of pessimism among prospective buyers,” ASB chief economist Nick Tuffley said.
High-fives all ’round at the RBNZ this morning! They’ve been wanting to take some of the excess out of NZ house prices.
On the outlook for further rate hikes from the RBNZ, ASB is expecting the Reserve Bank to hold off raising the Official Cash Rate (OCR) again until early 2015:
- “We anticipate the Reserve Bank will lift the OCR to 4.5 per cent over 2015, a further 1 per cent above current levels, which would result in a further mortgage-rate increase for borrowers”
