Average asking price of homes for sale on Realestate.co.nz dropped by almost $29,000 in October while stock levels were at an almost 10-year high

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Fools are an integral part of the food chain it appears https://www.stuff.co.nz/home-property/360504662/pm-christopher-luxon-se…

Anecdotally seems the case. Landlord mate has just sold his last they all went quickly. Moderish homes, good areas and he does the full makeover - new carpets etc, whatever it needs he does it. So yeah good stuff moving, but I'd pick the unsold lower c##p will eventually drive everything down.

Same in my area - nice family homes in the best school zone are selling for record prices.  Tiny townhouses with no garages are piling up unsold, and even discounting the price is not moving them.

lol no. That doesn’t make sense. Prices change at the margin. 

Your comment is straight from the mouth of Spruiker Extraordinaire Tony Alexander.  REINZ are the real estate industry.  They have a vested interest in spinning prices to look better than they are - and that is what they do.  REINZ said prices are up to Oct.  Core Logic says prices down to Oct.  Core Logic are not independent either - but more independent than REINZ.

The REINZ HPI is based solely on the prices of properties that have successfully sold. This represents a minority of the overall property stock.

It does not account for the majority of properties that are listed but fail to sell.

You’ll only place you’ll find sober commentary on our property market, is from international sources. They’re all laughing at the dumb bogan country bidding up the biggest property bubble in the world.

It's a pretty safe prediction that interest rates will continue falling ......

That would depend on which echo chambers you're flitting around TTP 

You're coming across as totally frustrated... You can still enjoy your home when it's falling in value. 

Exactly. That's a lot of unsold stock. Over 4k in Canterbury, nearly 2k in Wellington - yikes!

Centrix reported very low levels of mortgage arrears yesterday. However, around 12% of the eligible population had fallen behind on their consumer credit repayments last month. Business liquidations are also at an all-time high with plenty more expected to come.

Link

In this situation, cash is king!

Auction clearance rates are close to their highest point for three years, DGM.

TTP

Cool... might be some cleaning jobs going for you in their office.

Do you think that sickly GDP growth and rising unemployment will be tolerated by the powers that be, especially when the CPI is well within target band (and most domestic inflation that does exist is not influenced by the OCR)?

As B. Clinton said ‘it’s about the economy, stupid’

This was literally an article yesterday saying the opposite:

The Reserve Bank's forecasts for the Official Cash Rate are "too high and too hawkish", according to Kiwibank's chief economist Jarrod Kerr.

Kerr says because of the the RBNZ's forecast OCR track there are not enough cuts being priced in by wholesale interest rate markets.

"We believe the RBNZ will be forced to lower their track (again), and deliver faster cuts," Kerr said.

https://www.interest.co.nz/economy/131057/kiwibank-chief-economist-jarr…

🤣😂 Who are you referring to? We both work full time.

The salty tears of spruikers make me feel there is hope for New Zealand. Keep em coming.

Better to be a Dreamer than an unscrupulous bloke like Niffy is 

Labour will probably introduce one at the next election.  It might even seem reasonable at the time.  However, I can almost guarantee that any coalition agreement with the Greens and TPM will turn a reasonable CGT into a punitive wealth confiscation tax.  What you think you are voting for will be very different from what they deliver.

So if property prices keep going down we will get tax write-offs against the public purse? Great!

"An even better measure would be to ban interest-only mortgages entirely. Though I can't imagine there's too many of those while future house prices gains are off the table and yields are low."

Percentage of loans on interest only (Oct 2024)

1) owner occupiers: 7.4% ($20.4bn)

2) non owner occupiers: 33.5% ($30.9bn)

3) business: 37.6% ($46.8 bn) - some of this may have gone into non owner occupied residential property

Another case of mortgage fraud coming to light - borrower and mortgage adviser gaming the system.  The borrower gets the finance to purchase the non owner occupied property and the mortgage broker gets their commission. 



Borrower pursues claim against mortgage adviser when property deal incurs losses.  If the property deal had been profitable it is likely that the claim by the borrower would not have been made.

 

The lender told the adviser it would approve the loan if the couple could show they had savings or cash of $100,000.

The couple told Financial Services Complaints Ltd (FSCL), an ombudsman service for financial services providers, that the adviser helped them to borrow $100,000 from another lender as a personal loan.

They said the adviser told them to get a family member to sign a gift certificate saying he would gift them $100,000.

They complained to FSCL that the adviser had come up with the "deception plan" and led them to believe it was not uncommon. But FSCL said the evidence showed that the adviser came up with the plan and knew the couple were borrowing the $100,000.

"Although the adviser said that he was not seeing emails in his inbox while he was overseas, it was clear he had seen some emails because he personally replied to them. This raised doubt about the adviser saying he had not seen emails about the $100,000 loan being for [the couple] not [the woman's father]."

"The adviser's staff clearly knew that [the couple] were simultaneously borrowing a further $100,000, and getting a gift certificate signed. The fact they did not raise this with the adviser suggested he knew about the deception plan."

But FSCL said the buyers were not "unsavvy" and they decided to continue with the plan knowing it was wrong.

"We also took into account that [they] must have deceived the third-party lender about the purpose of the $100,000 loan."

FSCL said it was fair that the couple and the adviser should bear half of the losses each.

It said the couple lost $164,000 including loss in the value of the investment property, less 15 percent to account for market forces outside the adviser's control, the interest they paid and the losses from the cost of buying and selling the property such as a builder's report and real estate agent fees.



https://www.rnz.co.nz/news/business/535422/mortgage-adviser-told-to-pay…

 

There are plenty of implementation choices for CGT still to argue over