BNZ Overview Of The Housing Market

BNZ chief economist: The longer home buyers hold off the more house prices will rise

August 26, 2013,
David Hargreaves

BNZ chief economist Tony Alexander says his “best guess” is that housing may remain a seller’s market till about 2017-18.

He also says that current moves by the Reserve Bank might lead to a spreading of house price rises from Auckland and Christchurch to other parts of the country.

In his latest “Weekly Overview” Alexander said for the past four years buyers had been asking him whether it would be better for them to hold off buying till prices fall and they can get something cheaper.

“My answer now is the same as it was back then. The longer you hold off the higher prices will go,”he said.

“Those holding off since the end of 2008 because they believed silly forecasts that house prices would collapse 40% are now facing average Auckland house prices instead near 40% higher than they were back then.”

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