The latest mortgage data from the Reserve Bank of New Zealand (RBNZ) shows that Kiwis continue to abandon the nation’s housing market following 4% of interest rate hikes from the central bank.
Only 14,252 mortgages were taken out in December 2022 – less than half the record 31,282 mortgages originated in March 2021:
Meanwhile, only $69 billion worth of mortgage commitments were taken out in 2022, down 32% year-on-year:
The collapse in new mortgage commitments is also reflected in sales volumes, which have more than halved from their peak:
The overall slump in buyer demand is the key reason why New Zealand home values have crashed 15% below their November 2021 peak following 13 months of back-to-back declines.
It is also why the ANZ Bank forecasts a 22% peak-to-trough decline in New Zealand house prices.
