NZ: Softening in housing markets – ANZ

New Zealand’s housing market has experienced a period of softness in recent months, according to analysts at ANZ.

Key Quotes

“The Auckland market has been weak, while pockets of pressure remain in other markets. The outlook is uncertain at present and policy changes look set to cause some volatility in the data, which may make the property market pulse difficult to gauge. Nonetheless, we expect that an overarching theme of softness will persist, with a number of headwinds acting on the market.”

“In our view, a rebound does not appear particularly likely, despite a number of supportive factors still in play. Given this outlook, we expect that the RBNZ will ease macro-prudential policy at the November FSR, but continued caution should see policy settings remain “tight” for some time.”