The Reserve Bank of New Zealand’s (RBNZ) latest Monetary Policy Statement, released yesterday, is now forecasting an earlier and steeper decline in house prices, beginning from the current quarter. This comes after the RBNZ yesterday tightened the cash rate to 1.0% with further tightening foreshadowed.
Below are the key extracts with respect to New Zealand property prices:
House prices have been expected to decline moderately towards more sustainable levels since the August 2021 Statement. However, the magnitude and timing of house price falls have always been uncertain. Nationwide house prices fell in December and January.
