NZ Property Crash Looms – Warning for Australia

The reserve bank of New Zealand just recently reduced interest rates for the first time in over four years. Many economists are now expecting house prices to stop falling and show modest rises from here. However, there’s some serious reasons why New Zealand house price fall could not only continue, but could actually accelerate – and if this happens, it could be a major warning for the Australian housing market.

The majority of charts used in this video come from these Macrobusiness articles:

DISCLAIMER: This video content has been made available for informational and educational purposes only and does NOT in any way constitute financial or investment advice.

#property #housingmarket #newzealand #housingcrisis #bikokonstantinos

[bikokonstantinos]

Will New Zealand house prices continue falling? Will Australian house prices continue defying gravity?

[southernfriedkiwi]

I left NZ in 1989 and never moved back. My wife and I live outside Atlanta and bought our 1997 home in 2016 for $180, 000. Four bedrooms/two bathrooms, two car lock up garage(attached), fireplace, 16 foot ceilings in most of the house, fully insulated, double paned windows, full central A/C, and on .6 acre. People back home have asked if we would live back in NZ or OZ. I always respond that we would only be moving back to be poor, because of the price of housing/fuel etc. In America we have both retired at 50/53 and our home will be paid off this coming year. I would also add, that in America, we have real 30 year fixed mortgages. Our 3.5% mortgage is 3.5% on day one and never differs until you pay it off.

[DianaTownsend-kjkj]

New Zealand's property market has been overheating for a while, and if it crashes, it could send shockwaves across Australia. But I think it's not all doom and gloom

[Stevekirby-jx]

I work in plumbing sales in NZ, we are absolutely dead. The building industry has come to a grinding halt. The cost of living is through the roof. People have no spare money. House prices are so high you require 2 big wages for a mortgage with no spare living money. People all across the boards are getting laid off. The atmosphere after the covid nightmare has been dystopian. Its become a very average place to ive. Many are making moves to leave this once beautiful paradise

[airstry]

Little bit of insight for you Biko from a Kiwi. Crime is way high in Auckland now days. Heaps of people loosing jobs, lots of businesses shutting doors, the public transport basically doesn't work.
Government just doubled the cost for getting residency etc for migrants. Locals are leaving cause the cost of living is so high, no future for most young people. It's going to get a whole lot worse yet.

[oscarellis]

The prices aren't going up in value its the money collapsing depreciating in value.

[chrisrutherfurd]

Tell ya what. I'm a kiwi but left to work abroad years ago. Whenever I return it's as though I had never left. There's next to zero progress on a social front, people are obsessed with home ownership, and people in general are clicky and stuck up, even relatives and family members. I always leave again. How can anyone live in a place where you're undervalued, unappreciated and without a roof over your head. Ridiculous.

[vaplaya]

Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.

[virbron]

I have never seen so many people living on the street in Australia in my life

[georgedamis]

How about only 12% of Australian incomes can now afford to buy a house in Australia. Disgraceful

[senseiseagal]

Australia is in trouble. I escaped to Thailand. Ministry of Truth coming soon to Australia also. Why? Why did they ruin a great country.

[renderpolice]

The house prices are falling down in NZ because people there are fleeing in droves and coming here in OZ

[helpelaine]

The reason why immigration is often not blamed for increasing housing prices is because a lot of people still believe that most migrants are refugees whereas most immigrants are in fact not refugees but cashed up economic migrants.

[pandemik]

All the data is screaming NZ is in recession harder than during the GFC, though real estate prices haven't collapsed. But you'd hardly know it by the news media and governments reporting on it. Since around 2019/2020 we just don't get told the truth anymore, (except from social media). This means a general lack of situational awareness. A few of us see what is going on, but the sense making aparatus of society is not functioning correctly.

[justiceg]

prices won't drop til they stop bringing in a million people a week, there was like 30 cars at the home open I went to on the weekend and it's 2 hours from a capital city.

[Chris.Davies]

The price to build houses in NZ is absolutely insane.
We've created a culture where new housing is impossibly expensive - and this is fully intentional.
My next door neighbour's rebuild had a bill of $47, 000 just for the scaffolding. How is that even possible?
When I build another new home, I'll buy second hand scaffolding, and sell it once the job is done.

[thelostgeneration]

My five cents on this topic:
RBNZ and government have been too "good" to tame inflation and basically triggered a chain reaction with "no return" consequences:
- debilitating the core of the nz economy, small businesses
- creating unprecedented brain drain
- putting under pressure most active taxpayers, mortgage payers etc
- helping all the types of property pigs taking over the housing market
All together resulting in a carefully managed economic and social suicide for the sake of interest of bunch of boomers and stakeholders.
Ladies and gentlemen: we are witnessing self-execution of the system we live in

[swites]

I live in Christchurch NZ and they're building all these new suburbs everywhere. I keep thinking who are they building them all for? Firstly where are all these people who can afford them? And who is left to buy them? Especially considering people are leaving in their droves looking for greener pastures in Australia and overseas.

[williamcrossan]

Yeah, both countries are buggered. Government policy and fiscal settings mean house prices are at risk of rising again.
A drop in interest rates in Australia could have the very unwanted effect of pushing house prices.

[PeroniPete]

Biko, as you showed, NZ immigration is falling...in Aus it's thru the roof, thanks to the inept Government. That's a big reason why house prices in Aus won't fall. The high migration in Aus is precisely to keep prices going up like a Magic Pudding. And to keep Harry Tri happy building more units.... I guess he feels not nearly rich enough yet..!!