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If you look at Auckland, it dropped 10% in late 2016 and has fatlined with blips in q3 since.
Im looking at small cities with realtively lower median income like dunedin where the median house prices are skyrocketing. At what point do people realise its paper money and there is nowhere cheaper in NZ to go to etc. The median is now $600k. If Auck is fluctuating high $900ks, per capita I do not see the value and what is driving its rise? I remember the day you could buy a Dunners house for 1/10th of Auck not that long ago.
Its not the only city. Even Welli, some suburbs are at $960k median with a capita of 200k. Again I dont see the value.
There has to be a point where a city 1/10th the size with relative median multiples to Auckland, that it cannot outprice Auckland median house price?
Is it possibly these smaller cities and towns where Investors are still trying to chase ROI which will obviously plummet in a major correction, that will drive this MAJOR correction that the likes of Bloomberg predicted we are 2nd most likely to.
And if so, does Aucklands recent lack of volatility give it less likelyhood to over correct in such an extreme situation (ie something similar to Ireland in the GFC)?
I find this a pretty good place for graphs like this median one https://www.interest.co.nz/charts/re...an-price-reinz
Im looking at small cities with realtively lower median income like dunedin where the median house prices are skyrocketing. At what point do people realise its paper money and there is nowhere cheaper in NZ to go to etc. The median is now $600k. If Auck is fluctuating high $900ks, per capita I do not see the value and what is driving its rise? I remember the day you could buy a Dunners house for 1/10th of Auck not that long ago.
Its not the only city. Even Welli, some suburbs are at $960k median with a capita of 200k. Again I dont see the value.
There has to be a point where a city 1/10th the size with relative median multiples to Auckland, that it cannot outprice Auckland median house price?
Is it possibly these smaller cities and towns where Investors are still trying to chase ROI which will obviously plummet in a major correction, that will drive this MAJOR correction that the likes of Bloomberg predicted we are 2nd most likely to.
And if so, does Aucklands recent lack of volatility give it less likelyhood to over correct in such an extreme situation (ie something similar to Ireland in the GFC)?
I find this a pretty good place for graphs like this median one https://www.interest.co.nz/charts/re...an-price-reinz