Property market plunge deeper than predicted, more to come – CoreLogic – New Zealand Herald

Previously buoyant areas of the country have suffered the worst but the strength of the labour market should limit the risk of mortgagee sales for many. Photo / George Heard, File

From RNZ

The downturn in the property market is deeper than anticipated, with a bigger drop in values and sales volumes likely to persist into 2023.

CoreLogic NZ’s annual Best of the Best Report confirmed 2022 was a buyer’s market, with the negative outlook rising in line with mortgage interest rates.

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CoreLogic chief property economist Kelvin Davidson said the introduction of tighter lending regulations, loan-to-value ratio rules, higher mortgage rates and more listings combined to tilt the balance of power away from sellers.

“Our outlook proved to be correct, but we, and many others, underestimated how deep the downturn in sales volumes would become and also how far house prices would fall.

“It’s been striking just how weak sales activity has been this year, as buyers have taken their time to decide about purchases and vendors have also been able to ‘sit tight’ too – assisted by low unemployment.”

CoreLogic chief economist Kelvin Davidson. Photo / Peter Meecham, File

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