[Kiwi-In-Texas]

Interesting article... However, house prices need to drop more to be affordable for middle income workers.


http://www.stuff.co.nz/4318037a10.html

[ourquest]

Yes but this signals a substantial change in the market. 3% drop in one month period is very significant, although with less properties selling (another indication of a downturn) less sales can mean slightly less accuracy in the statistics. So for those of us planning to settle in NZ in 2008, and those on middle incomes in NZ it does look promising that affordability might improve.

[Nick88]

I heard on the radio this morning that QV has announced that price rises has fallen again by 1%, despite this prices have still increased by an average of 11%pa. The report isn't on the website yet, so I can't elaborate.

I would be skeptical of the 3% drop. It is likely to be showing a tendency for cheaper rentals to be sold off before the flattening of prices reduces the landlord's returns.

[Kiwi-In-Texas]

I agree and house prices need to drop even more to make buying a house more affordable for some migrants and those on middle incomes in New Zealand.
I am an expat Kiwi returning home with my husband in 2008 and we are keeping a very close eye on the housing market as house prices in different areas of New Zealand will determine where we will live.

[mossum]

Most property is selling for 9-10 % of the originally listed price . I still feel that this is now a "normal " market . hardly recession but certantly no longer booming ( damn - should have got into RE earlier ;) )

Just my thoughts

vic

[markw55]

At the moment the market remains sluggish and lots of houses are starting to hang around unsold.

Most commentators seem to be saying that house prices will either stay where they are for a couple of years, allowing wages to catch up and make home buying affordable again or that a sharp correction is coming.

The only bullish commentary I can find is saying that there is a chance that the interest rate cuts in the US and UK will reignite the global asset bubble. Overall though it looks like we are in a declining market for at least the next 12 months so there is no hurry to buy.