Auckland Medium house price falls 1.7% in November
http://www.msn.com/en-nz/money/news/...cid=spartandhp
Housing has never been this unaffordable, approx. 10 times household income so is this the start of a long trend down what with substantial new supply coming to the market in the next two years, increasing interest rates and more restrictive lending policies especially for investment properties ? Given ever increasing constructions costs are there any implications for development margins and profit growth ?
Let the debate commence !
Could easily have posted this in the SUM thread, equally applies there. I know some on here especially Vaygor1 will debate that the trend doesn't affect profit growth and perhaps with quite some validity but it does make it harder for old folks to sell their homes and afford these retirement units doesn't it. Feels like the end of the golden weather to me and I note RYM is ostensibly unchanged in price for the last 2 1/2 years and SUM are still trading below their 100 day MA, as is RYM.
Disc; Don't hold any retirement stocks at this stage but prefer SUM's valuation to the others. (Waiting for SUM to clearly break up through its 100 day MA and prepared to wait as long as it takes).