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  • Government not expecting major property slump

    Government not expecting major property slump
    New 8:25PM Monday March 03, 2008

    The Government is not expecting a property crash, Prime Minister Helen Clark says.

    Recent figures from the Real Estate Institute (REINZ) suggest the market is now in a downturn with prices dropping slightly in some areas and houses taking longer to sell.

    Some housing market commentators have suggested the worst is yet to come, with some picking a fall as big as 30 per cent over three years.

    But Miss Clark said that did not line up with the official advice she was receiving from Treasury.

    "I haven't seen predictions anything like that," she told reporters.

    "In fact the advice we had ... was that a fall of anything like that magnitude was very very unlikely and that the affordability issue was unlikely to be impacted very much at all by what was likely to happen to house prices."

    REINZ's figures show the national median price dropped to $340,000 in January, from $345,000 in December and compared to a peak price of $352,000 in November.

    The national median was 3.97 per cent up on the $327,000 figure in January 2007.

    REINZ said sales last month were unusually low, even for January which was traditionally a weak month.

    The 5186 sales last month were the lowest for a January since 2001, and compared with 7566 in January 2007 and 5597 in December 2007.

    Days to sell increased to 49 days nationally, the highest since the January 2002 figure of 54 days.

    In January 2007 the average number of days to sell was 38, while in December it was 36.

    http://www.nzherald.co.nz/section/1/...ectid=10495917
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  • #2
    Originally posted by muppet View Post

    The Government is not expecting a property crash
    Oh, god - that means that its really going to happen, then!

    Comment


    • #3
      my thoughts exactly... especially because given the govt isn't expect a crash and does want to make property more "affordable" they are likely to take action which has the net effect of lowering prices...
      New to property investing? See: Best PropertyTalk Threads for New and Old Investors And/Or:Propertytalk Wiki

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      • #4
        With an election coming up, the last thing that the government wants is the 70 odd % of people who own houses to lose money. If they win the election, then all bets are off and they will force a crash on some socialist policy platform - vi va revolution.

        Comment


        • #5
          inflating the price

          of everything else seems to be the only "win-win" solution

          Comment


          • #6
            Oh, the cynic in me.

            When was the last time anyone could rely on anything any politician said??

            National will get in, the market will go down (crash?), Labour will blame it on National's policies.

            It's not called politicking for nothing.
            Patience is a virtue.

            Comment


            • #7
              Found this while I was searching for something else. Makes interesting reading this again.

              Seems like my predictions were correct.
              Patience is a virtue.

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              • #8
                Except National can say "it's because of lots of years of mismanagement under Labour", just like Labour did when they came to power all those years ago.

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                • #9
                  Originally posted by k1w1 View Post
                  Except National can say "it's because of lots of years of mismanagement under Labour", just like Labour did when they came to power all those years ago.
                  Well, it might not be mismanagement, but you saw very little from the Labour govts in the way of "economic stewardship." I've argued this on a famous leftie NZ blog and the very smart people on the the blog didn't get it. When did you ever see Clark or Cullen warning average NZers about where debt comes from and its consequences? Sure, you can argue that the other leaders in the other Anglo-Saxon debt farms didn't do jack, but that just shows how cynical Clark and her lot really were. They were all too happy to lap up the chardonnay from the housing boom, but it was no secret that the current account deficit was exploding into the stratosphere as houses in Glenfield started hitting the 500K mark. Any amateur economist could understand that what was going on was exactly the same as what was happening in the other bubble states.
                  Last edited by tanmedia; 20-11-2008, 12:51 AM. Reason: spell

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                  • #10
                    Hey, I'm from Glenfield, you cheeky git :-)

                    Comment


                    • #11
                      Originally posted by k1w1 View Post
                      Hey, I'm from Glenfield, you cheeky git :-)
                      Ahhhh, that explains everything.
                      Patience is a virtue.

                      Comment


                      • #12
                        Originally posted by k1w1 View Post
                        Hey, I'm from Glenfield, you cheeky git :-)
                        I'm from Whangarei, so watch your step!

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