Westpac report says the good times in the residential property market will "end very soon".
The housing market is facing a looming slowdown, according to Westpac's chief economist Dominick Stephens.
In a Home Truths Report on the housing market Stephens said although the market was positive for now, it will soon slow.
"In our view the good times for the market are going to end very soon," he said.
"We are forecasting a small decline in house prices in the second half of 2018.
The report pointed to six factors that would likely cause a market slowdown:
- Foreign buyers will be banned from buying existing residential properties, probably by the middle of this year.
- Ring fencing tax losses on residential investment properties, which means investors won't be able to offset any tax losses from a property against other income.
- The Tax Working Group will probably recommend a Capital Gains Tax, although the family home will likely be exempted.
- Mortgage rates are more likely to rise than fall
- Net migration is expected to keep slowing while home construction will keep rising.
"This is a prodigious set of negative factors, but for a few reasons we are forecasting only a slight house price decline, rather than anything dramatic," the report said.
Some Choice News!
Many New Zealand gardens aren’t seeing as many monarch butterflies fluttering around their swan plants and flower beds these days — the hungry Asian paper wasp has been taking its toll.
Thanks to people like Alan Baldick, who’s made it his mission to protect the monarch, his neighbours still get to enjoy these beautiful butterflies in their own backyards.
Thinking about planting something to invite more butterflies, bees, and birds into your garden?
Thanks for your mahi, Alan! We hope this brings a smile!
Scam Alert: Fake information regarding December Bonuses from MSD
The Ministry of Social Development is reporting that fake information is circulating about new ‘December bonuses’ or ‘benefit increases’
If you get suspicious communication, please contact Netsafe.
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