Westpac report says the good times in the residential property market will "end very soon".
The housing market is facing a looming slowdown, according to Westpac's chief economist Dominick Stephens.
In a Home Truths Report on the housing market Stephens said although the market was positive for now, it will soon slow.
"In our view the good times for the market are going to end very soon," he said.
"We are forecasting a small decline in house prices in the second half of 2018.
The report pointed to six factors that would likely cause a market slowdown:
- Foreign buyers will be banned from buying existing residential properties, probably by the middle of this year.
- Ring fencing tax losses on residential investment properties, which means investors won't be able to offset any tax losses from a property against other income.
- The Tax Working Group will probably recommend a Capital Gains Tax, although the family home will likely be exempted.
- Mortgage rates are more likely to rise than fall
- Net migration is expected to keep slowing while home construction will keep rising.
"This is a prodigious set of negative factors, but for a few reasons we are forecasting only a slight house price decline, rather than anything dramatic," the report said.
Poll: Have you ever had a scary flight?
A plane flying from Christchurch to Wellington on Sunday had smoke billowing out of the engine and upon landing, passengers had to open the emergency exit and jump out. Have you had any scary flying experiences?
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56.4% Yes!
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43.6% No, it's always been smooth flying
ALEXANDER ROAD SPEED LIMIT
Alexander Road in Trentham-Wallaceville of which 50% separates a golf course from a military encampment enclosure and the rest has mostly high fenced off industrial and residential areas on both sides, should have a 70km speed restriction.
Only a short time ago the road had a 80km restriction and was reduced to a pedestrian 50km much to the frustration of many. It has never been an accident prone stretch of road.
The several round-abouts ensure speed is reduced to 30-40km when these things occur.
I recently stayed a few days in Feilding - often given the title of the best town in NZ - and one of the lengthy main streets has a 70km speed restriction despite a predominance of unfenced residential properties on both sides.
LIVE Q&A: Financial well-being with Cat Rikihana
Today (Wednesday) we're having another Neighbourly Q&A session. This time with Cat Rikihana who is a financial mentor, educator and financial capability practitioner at Financial Freedom Trust in the Manawatū.
Cat Rikihana (Ngai Tahu) like many financial mentors around Aotearoa, works with individuals, groups and whānau to successfully navigate financial stress and hardship. Mentors work alongside whānau to increase confidence and skills in personal money management and advocate with and for clients. Cat enjoys delivering online and face-to-face workshops which provide opportunities to normalise money conversations and encourages people to make time to consider their financial well-being.
Cat is also an independent financial well-being coach, educator and indigenous life coach at Restore Wellness Network. She is a published writer and currently in the process of writing her first non-fiction book: 'A financial self-care guide for women in Aotearoa.'
She'd love to answer any questions you may have around your budgeting and spending habits, strategies for saving, retirement planning and debt. (Don't be shy, but be mindful about what you disclose!)
↓ Share your questions now and Cat will reply to your comment below ↓
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