Its all about fear, nothing to do with the market being smarter, is it smart to sell for a loss when you don't have to in a stock with 10 yr tailwinds? Are any of the insiders with large holdings selling?
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this wont help just released by rbnz
A sharp correction in house prices remains a "plausible outcome" that would have broad economic implications, the Reserve Bank says.
https://www.interest.co.nz/banking/1...been-declining
I believe it’s too soon for that sort of call. If interest rates keep rising you will see house prices drop, as people can’t afford their mortgages, increased insurances, increased power bills, rates and increasing food prices in the future. I’m thinking more likely at 15-25% drop for the future for homes. No time frame, as I feel that will be as a result of costs to households and how fast they climb indirectly through inflation.
On Trademe one house in Napier for sale dropped their asking price by $100,000 (from memory it was a house priced over 1.4 million) and I feel that is only the tip of what is going to happen.
https://www.newshub.co.nz/home/money...ogic-says.html
I'm not saying your all wrong but your probably all wrong. 5000 drop in the national average? Someone overpriced a house in Napier? Locally I see strong demand EXCEPT in areas that got well ahead of themselves. OCA? Not really and the houses that are hard to sell are the upper end of first homes and investment properties from what I have seen.
Wait till they add a land tax in the next term.
The home owners will face double taxation and of course if the asset loses money you be triple taxed as ex onomists dont do P&L accounting for tax , they do capital value taxation.
Could see land values drop farther putting more negative sentiment on this sector in the long term. Although you could argue it hasnt effected other markets with land taxes.
https://www.stuff.co.nz/business/128...ment-over-land
Totally agree that location means everything. Coastal properties continue to increase over the long term and if they drop in the short term it won’t be by much as demand is too great.
Current prices are not the concerns and people who don’t need to sell are not the concern. Those forced to sell will be and many will be forced to sell if interest rates quickly rise, which are predicted to happen.
When it comes to OCA it will not really affect their business model too much in care as it’s essential and elderly will just leave less to their children when buying an ORA, so I am still optimistic long term holder and will buy more over time if their share price keeps dropping.
Recent report on coastal seas levels looks pretty dire even for NZ.
want them there locations to be up on a nice hill top away from erosion.
Some nice safe locations being built in boring central north island towns from ARV and OCA.
Hamilton to Cambridge area both have new villages under construction.