PHOTO: VIRGINIA WOOLF/STUFF Economist Shamubeel Eaqub said it was irresponsible to try to put a number on what might lie ahead for the economy and housing market.
ANZ economists expect house prices to fall 3.5 per cent this year – but say the drop could be nearer 10 per cent, as the impact of a global coronavirus-driven downturn hits New Zealand.
The bank’s economists have released their latest property market research, which notes that the number of houses changing hands looks “contained” relative to history.
“Sales are expected to move lower alongside prices, as difficult labour market conditions impact on households and investors alike.”
Senior economist Liz Kendall said the fortunes of the property market would be tied to the economy more generally, with a lag before the downturn translated into softer prices.
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