Property market swings in buyers’ favour

The bank’s demand-supply housing balance measures show that Auckland remains the hottest.

The majority of other regions show pending excess supply conditions. The tight demand-supply balance that has been supportive of the housing market for some time finally looks to be turning. Ultimately, this suggests that house price growth, which has already softened recently, will continue to moderate over the year ahead.

The easing trend in net migration inflows continues, which will take further pressure off the housing market – a development that the Reserve Bank will welcome.

ANZ chief economist Cameron Bagrie sees migration levels pointing to further moderation and flatness in the housing market for the rest of the year.