Property Institute of NZ shares some predictions for this year’s biggest housing trends.
• Longer term mortgage interest rates will rise as NZ banks need to pay more to attract a diminishing fund of investment.
• House prices will keep rising… due to the continuing gap between demand & supply.
• Investors with lower debt gearings will be constrained for a while by tighter lending rules.
• New home construction will start catching up.
• The cost of renting will start to rise, esp. in Auckland, as landlords look to offset lower capital growth with higher rental returns.
• Debt-to-income measures are off the agenda – for now.
• Property will be the #1 election issue.
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