New Zealand housing market confidence tumbles as rates and inflation rise
Confidence in New Zealand's housing market has tumbled as interest rates and inflation rise, RNZ Business reports. Buyers are more cautious and sellers are being forced to lower price expectations.
According to RNZ Business, confidence in New Zealand's housing market has weakened as interest rates and inflation rise. Surveys show buyers are postponing decisions on new homes.
Higher mortgage costs are weighing on average house prices, which are sliding marginally. Housing starts are slowing as developers delay new projects, and the construction sector is signalling the risk of contraction in workloads.
The figures are crucial for the Reserve Bank of New Zealand's policy decisions. The RBNZ may turn towards rate cuts, but inflation remains above target and continues to weigh on real wages and household spending.
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