Thursday, March 13, 2014

Unsurprising

From Radio New Zealand two days ago:

The Real Estate Institute says sales numbered about 6100 in February, a drop of 8 percent compared with February last year. That's the third successive month they've fallen, following the introduction of lending restrictions to cool the property market.

The national median house price rose 9 percent to $415,000, but it is increasing at a slower pace.

...

Ms O'Sullivan says first-time buyers have largely disappeared from the market since the introduction of lending restrictions for those with small deposits last October.
Analysts expect the property market to cool even further this year, due to expected interest rate rises making it more expensive to own a home.
And of course the last paragraph bore truth today with the OCR heading north.

The result of successive governments and councils failing to attack the supply side of housing is this.  And then said politicians have the gall to say they care about first home buyers.

Yeah.  Right.

1 comment:

The Veteran said...

Nick .... so its the 'governments' responsibility to manage the supply of housing.

Interesting comment from an ACT man.

Surely you don't mean the actual provision of housing but, if you are referring to the need for further reform of the RMA and District Plans so as to remove roadblocks holding up development then I agree wholeheartedly.