ASB slashes house price forecasts

The bank has just released its latest Home Economics report and it states that the disruptive effects resulting from attempts to contain coronavirus are a gamechanger for New Zealand’s housing market.

Prior to the coronavirus outbreak, the market was rebounding, with exuberance, from the quieter times seen last year.

Sales activity was up significantly in recent months and, because listings remained low, prices were climbing – even in Auckland’s market, which had been in the doldrums for some time.

Economists were predicting strong house price growth nationwide throughout 2020, with even the Reserve Bank forecasting a peak of 7.7% growth in its most recent Monetary Policy Statement in February.