PHOTO: Property Crash Coming?
Friday 16 August, 2019
The Labour led government have certainly tried to play their part of enforcing a correction, with a Foreign Buyers Ban. This has certainly had an effect in Auckland and Queenstown.
Australia has been through effectively their biggest property market correction in history. New Zealand was expected to follow – but surprisingly has held very well.
The NZ economy is strong but it was always going to be the Global Economy that was going to take us down…
Lets look at the real dangers and challenges that the NZ economy faces
“The only times the Reserve Bank has ever slashed interest rates by half a per cent or more: after 9/11; during the GFC; after the Canterbury earthquakes NZ” HERALD
1/ The New Zealand share market has slipped in the wake of fears of a United States recession and a big drop on Wall Street.
2/ United States stocks tumbled overnight on Wednesday after an “inverted yield curve” on US government bonds reinforced fears that a recession might be looming.
3/ National Party finance spokesperson Paul Goldsmith responded to the “historic cut” by saying it sounded a dramatic warning that the New Zealand economy was slowing “and the Government needs to get serious about growth”. STUFF
4/ Downbeat manufacturing data
5/ Historically low mortgage interest rates and the real estate markets are not firing – Mid-winter hits house prices: Auckland down 2.4%, NZ down 1.7%
6/ Our biggest exporter Fonterra – is looking shaky
Allot of this of course is thanks to Donald Trump: – Trump’s trade war with China