NZ House price fall

House price fall no longer on the cards, say Westpac economists | NEW ZEALAND

PHOTO: STUFF New Zealand house prices are now expected to escape a dip, say Westpac economists.

New Zealand house prices are now expected to escape a dip, say Westpac economists who have just reversed their forecast of a 7 per cent decline this year to a rise.

The coronavirus pandemic and its economic fallout, particularly unemployment, were widely tipped to hit house prices, with warnings of a fall of up to 15 per cent.

However, there has been little sign of that. The country’s median house price rose 16.4 per cent in August to $675,000, according to the Real Estate Institute of New Zealand, up $95,000 in 12 months and a gain of $16,000 in just one month.

Westpac had forecast house prices to fall 7 per cent between March and December this year, joining Treasury, the Reserve Bank and other major banks in taking a negative view.