
The Mortgage Lab Blog
354 FOLLOWERS
Whether you're looking to buy your first home, already have a mortgage, or are looking to invest, we're here to help you through the sometimes quite daunting process of getting a new mortgage and protecting you with Life and Health insurance. We make sure everything is set up correctly, help satisfy the bank's conditions, and work tirelessly to get you the best mortgage rates and..
The Mortgage Lab Blog
8M ago
Key Facts
Prime Minister Christopher Luxon did not explicitly say he wanted average house prices to fall, seeking only “downward pressure”.
Housing Minister Chris Bishop stated that house prices need to fall to improve affordability.
House prices have increased significantly since 2016, making home affordability a major issue in New Zealand.
Median house prices have climbed over 60% since 2016 and are still unaffordable by international standards.
The Government aims to increase housing supply across various segments, including owner-occupied, rentals, social housing, and emergency housing.
E ..read more
The Mortgage Lab Blog
8M ago
Key Facts
Sales activity increased by 9.2% annually in May, with 6,789 transactions.
Overall sales volumes are below the normal annual level, with 73,181 deals in the past 12 months.
New listings are supplementing inventory, benefitting buyers in negotiations.
House prices have slightly decreased in Auckland, Wellington, and Tauranga.
Total property stock is 15.8% higher than last year and 27.6% higher than the five-year average.
First-home buyers account for 25% of purchases, while relocating owner-occupiers maintain around 26% market share.
Regulatory changes are expected to have limited sh ..read more
The Mortgage Lab Blog
8M ago
Key Facts
ANZ economists suggest New Zealand’s economy may face a softer landing than previously expected.
ANZ’s chief economist, Sharon Zollner, predicts interest rate cuts earlier than RBNZ’s forecast.
Local markets predict interest rate cuts in November, February, and May.
Soggy housing data shows downside risk for property prices, which might rise modestly by 3% in 2024.
ANZ forecasts a 0.6% quarterly and 3.5% yearly rise in Consumer Price Index (CPI) for Q2.
Upcoming GDP data ranges between -0.2% and +0.2%, with ANZ’s outlook at the higher end.
Article Summary
ANZ’s top economists indic ..read more
The Mortgage Lab Blog
8M ago
Key Facts
New law changes aim to simplify the process for building granny flats under 60 square metres.
The policy eliminates the need for building consents in certain areas.
Opposition Labour Party supports the proposal but emphasizes compliance with the building code.
Concerns raised about potential issues with stormwater runoff and infrastructure pressure.
Changes could save builders a few thousand dollars.
Iwi housing providers see the rule change as beneficial, allowing quicker rehousing post-disaster.
The rule changes make permanent the temporary adjustments made in parts of Gisborne an ..read more
The Mortgage Lab Blog
8M ago
Key Facts
House sales in May showed a 9.2 percent annual increase but are still below normal levels.
Annual sales count was 73,181, far below the typical 90,000 per year.
Total housing stock is 16 percent higher than last year and 28 percent above the five-year average.
First home buyers account for 25 percent of purchases, aided by lower prices and KiwiSaver.
Relocating owner-occupiers account for 26 percent of purchases, indicating a minor resurgence.
High mortgage rates and policy changes have marginal impact on market recovery.
The recovery seen in early 2023 has slowed due to affordabili ..read more
The Mortgage Lab Blog
8M ago
Key Facts
ASB’s latest Housing Confidence Survey indicates a directionless housing market with high debt servicing costs and upfront affordability constraints.
For the first time since early 2021, more respondents expect interest rates to fall rather than rise, with a net 1% expecting a fall.
ASB senior economist Kim Mundy highlights that interest rate expectations are a key indicator for future price direction.
Expectations point toward the Official Cash Rate (OCR) cuts in early 2025, influencing housing market sentiment.
Overall economic growth is expected to remain weak, with higher unempl ..read more
The Mortgage Lab Blog
8M ago
Key Facts
Housing Minister Chris Bishop advocates for a reduction in average house prices, which he regards as too high.
Bishop’s stance is unusual among New Zealand politicians, who have typically resisted calls for significant price drops.
Price hikes have locked many prospective new buyers out of the market.
New Zealand house prices rose faster than in any other OECD country over the last 20 years.
Price corrections are underway, but prices remain above pre-pandemic levels.
Article Summary
Housing Minister Chris Bishop has publicly called for a reduction in New Zealand’s average house pri ..read more
The Mortgage Lab Blog
8M ago
Key Facts
House prices declined for the second consecutive month in May.
National median house price dropped to $770,000 in May.
House prices fell by 2.9% nationally over the last three months.
Auckland region saw a 4.2% price decline over the same period.
Sales increased by 8.0% in May compared to April, but were down 4.9% on a seasonally adjusted basis.
Price rises were only noted in Nelson and Invercargill, up 0.3% and 0.6% respectively.
Papakura in South Auckland saw the biggest decline of 6.4%; Whangarei followed with a 5.3% decrease.
Article Summary
For the second month in a row, New Z ..read more
The Mortgage Lab Blog
8M ago
Key Facts
Households with mortgages should not expect interest rate cuts for at least six more months.
Kiwibank survey: nearly one in three respondents cannot cover a $500 unexpected bill without outside help.
House prices continue to fall, with an average national decrease of 0.2% over three months ending May.
Auckland saw a 1.4% drop in quarterly house values for the fourth consecutive month.
221 suburbs saw price drops of at least 1% in the June quarter.
Proposed rate hikes: West Coast Regional Council (27%), Hastings District Council (25%), Wellington (17%), Hamilton (16.5%), Auckland (6 ..read more
The Mortgage Lab Blog
8M ago
Key Facts
Thursday’s release of Q1 GDP figures is highly anticipated, with experts divided on whether it will show growth or a small decline.
58% of new loans in April were fixed for a year or less, an increase from previous months, indicating that homeowners are betting on future rate cuts.
CoreLogic data indicates a patchy housing market, with some suburbs experiencing significant declines and others posting gains.
Net migration has slowed from its October peak but remains high, with a concerning trend of younger New Zealand citizens departing.
Rental price growth has decelerated to 3.8%, m ..read more