Property gauges show market on a decline
Four of the eight indicators look negative for house price values, whilst only one shows any sign of positively influencing the market; two show neutral change and one shows neutral-to-negative change.
The negative indicators pushing prices down include affordability, serviceability/indebtedness, interest rates, and consents and house sales.
Affordability, which remains over-extended, shows “extremely expensive levels.” The bank says, “Price increases are showing signs of slowing, but mortgage rates have increased.” This combination is having an impact on housing market activity.
The level indication given for serviceability of loans and indebtedness also remains “high” this month. “Household indebtedness and the debt servicing burden keep hitting new highs and show no signs of consolidating yet.” This affects existing homeowners.
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