By Devayani Sathyan
BENGALURU (Reuters) – New Zealand home costs are anticipate to reverse a current decrease and increase 6% next year as interest rate cuts from the Reserve Bank of New Zealand take impact, according to a Reuters survey of home strategists.
Despite aggressive interest rate increases, home costs in New Zealand are simply 19% listedbelow their November 2021 peak, less than half their over 40% rise throughout the COVID-19 pandemic.
While a sharp increase in interest rates from 0.25% to 5.50% from October 2021 to May 2023 did not outcome in a realestate market crash, it tamed an overheating market.
Average home costs fell nationally from this year’s peak of NZ$800,000 ($500,960) in March to NZ$753,000 in July, according to REINZ information.
The mean projection from an Aug. 20-30 study of 11 home market experts approximated a 1.0% average rate increase this calendar year, down from 4.5% anticipated in a May survey. Forecasts varied from -4.0% to 2.5%.
That was in sharp contrast to the 6.3% gains anticipated for Australian home costs this year.
“While the near-term momentum would recommend home rates will rema