Bubble Risk In House Prices Deflating

The risk of a significant NZ house price correction is slowly moderating, Moody’s says

July 31, 2014
By Gareth Vaughan

Credit rating agency Moody’s says the risk of a significant New Zealand house price correction is slowly moderating thanks to steps taken by the Reserve Bank and efforts to boost housing supply.
In a report on the New Zealand banking system Moody’s Sydney-based analyst Daniel Yu says the housing market “exuberance” of the last year raises some longer-term concerns, but the current house-price appreciation hasn’t been fuelled by excessive credit growth.
“Moreover, the risk of a significant house price correction is slowly moderating, as a result of Reserve Bank to cool down the market, as evidenced by a slowing of house sales and price growth.
“Elevated household debt remains a key sensitivity of the household sector.
But our expectation is for the Reserve Bank to tighten monetary policy gradually.”

Read the full article here:


Posted in News & Articles | Leave a reply

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>