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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
NEW ZEALAND
CoreLogic house prices fell 10.6% y/y in June in NZ (May -10.2%) falling 1.2% m/m in contrast to Australia where prices rose 1.3% m/m to be down only 4.7% y/y. The cash rate is 5.5% in NZ compared with 4.1% in Australia. While the correction in NZ housing continues, it is down 12.7% from its peak, prices are still 28.3% higher than they were in December 2019. Prices rose 46% over the Covid period.
- NZ house prices fell the most on the month since October 2022, whereas Australia recorded its fourth straight monthly rise. Both countries are seeing a big increase in immigration. Auckland fell 3% m/m while Sydney rose 1.7%.
- CoreLogic NZ said that the long and material hiking cycle had weighed on housing demand but that there are signs that a trough is imminent. Whereas in Australia they think expectations of further tightening will slow the market.
- Low stock of housing for sale in NZ as well as increased migration and a likely peak in rates should mean that prices will turn higher. A lack of supply is also a problem in Australia with city inventories over 25% below the 5-year average and is driving rising prices there.
- Head of NZ research Goodall said “stretched affordability, due largely to still-high property values and high interest rates compared to recent history is likely to keep a lid on demand, which should lead to a much more stable and balanced market.”
- CoreLogic also note that over 50% of average household income is required to service an 80% LVR mortgage in NZ compared with 43% in Australia.
- See NZ report here and Australia here.
CoreLogic home prices y/y%
Source: MNI - Market News/CoreLogic
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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