Home Real Estate Five parts of the economy affected by a weaker housing market

Five parts of the economy affected by a weaker housing market

0

Uncertainty stemming from New Zealand’s weaker housing market is having a negative impact on other parts of the economy, and it could go on for some time, experts say.

House prices continue to fall, with CoreLogic’s latest figures showing the national average price dropped 0.9% in the three months ending May. That’s the biggest quarterly decline since the end of 2010, when the country was recovering from the global financial crisis (GFC).

In some areas, the falls have been bigger. Prices in Auckland and Wellington are down from their respective market peaks by 10.2% and 10.4%, according to the Real Estate Institute.

And most commentators say there is more easing to come. ASB and Westpac have predicted prices could drop 20% from their peaks, when adjusted for inflation.

On an annual basis, the latest figures from the institute show sales were down 35.2% in April, while Realestate.co.nz has the number of homes for sale in May up by 76.7%. This…

Click here for full article…www.stuff.co.nz