Cash rate predicted to hold, housing market slowing

ASB economist continues to forecast a healthy economic growth outlook for New Zealand, but housing market has slowed down and business is predicted to be in a goldilocks condition.

According to the latest ASB uarterly economic forecast, the housing market, particularly in Auckland, is “losing steam.” Volume of house sales fell by 30% over the last year. Affordability challenges, additional loan restrictions, lifts in mortgage rates and reduction in the “fear of missing out” will be key drivers of the slower market conditions, ASB chief economist Nick Tuffley said.

ASB economist continues to forecast a healthy economic growth outlook for New Zealand, but housing market has slowed down and business is predicted to be in a goldilocks condition.

According to the latest ASB uarterly economic forecast, the housing market, particularly in Auckland, is “losing steam.” Volume of house sales fell by 30% over the last year. Affordability challenges, additional loan restrictions, lifts in mortgage rates and reduction in the “fear of missing out” will be key drivers of the slower market conditions, ASB chief economist Nick Tuffley said.

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