The Reserve Bank of New Zealand (RBNZ) believes the nation’s dwelling values are not sustainable and it is now forecasting that prices will fall in every quarter starting from Q42022 all the way through to the Q3 2024:
House prices in New Zealand have increased rapidly over the past year from an already elevated level. A confluence of factors suggests that house prices are above what is sustainable. While house price inflation has slowed in the past three months, momentum has been stronger than expected.
A moderation in house prices is expected over coming years, but the precise timing of this is uncertain.
