Westpac economists reckon the Auckland housing market is suffering a hangover from what it calls “recent excesses”. But every dark cloud has a silver lining, and that could be even lower interest rates.
The bank reports that house sales fell by 7 per cent across the country in October, and says it’s taking slightly longer for property to sell.
“The weakness was especially concentrated in Auckland, with sales down 15 per cent and prices down almost 5 per cent in just one month,” say the report’s authors.
“This confirms the idea that some of the recent froth in the Auckland market was driven by investors getting in ahead of the new regulations.”
Listen to this week’s podcast for the full report