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Flood damaged home
14 June, 2024
Market News

NZ residential rental market news, June 14

Sam Nicholls
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Major banks cut rates, The housing market's "silent crash", and Seven tips to ease mortgage pressure

Too long; didn't read? Here're this week's TLDRs...

Property Prices Continue to Decline Amid Market Uncertainty 
    Buyers have abundant choices in the property market. 
    No indications that house prices will increase soon. 
    Property values continue to decline. 
    Higher interest rates and economic conditions influencing buyer behaviour. 
    Sales volumes remain low. 
    First-home buyers benefiting from lower prices but still face affordability issues. 
    Investors remain cautious due to economic uncertainty and regulatory changes. 
    RBNZ's OCR increases impacting the market.  
    Read the article

Property Market Recovery Slows Amid RBNZ Measures 
    Property market recovery is slowing down. 
    RBNZ's OCR decisions impacting market sentiment. 
    Property values increasing but at a slower rate. 
    Sales activity remains subdued. 
    First-home buyers still facing affordability challenges. 
    Investors cautious due to regulatory changes and higher interest rates. 
    RBNZ considering stricter DTI and LVR measures. 
    Kainga Ora active in the market, supporting first-home buyers. 
    Market uncertainty expected to persist in the short term.   
    Read the article

Auckland Leads Nationwide Decline in House Prices 
    House prices continue to fall nationwide. 
    Auckland experiencing the largest drop in house prices. 
    High interest rates and economic uncertainty are key factors. 
    RBNZ's OCR hikes impacting buyer affordability. 
    Market conditions challenging for both buyers and sellers. 
    Lower demand and higher supply contributing to price declines. 
    First-home buyers still face affordability issues despite lower prices.  
    Read the article

Silent Housing Crash Driven by High Interest Rates 
    Housing market experiencing a silent crash. 
    Property values falling significantly without much public attention. 
    High interest rates and regulatory changes major contributing factors. 
    Investors facing negative equity and financial strain. 
    RBNZ's OCR hikes affecting mortgage affordability. 
    First-home buyers hesitant due to market uncertainty. 
    Market correction seen as necessary by some experts.   
    Read the article

First-Home Buyers’ Deposits Wiped Out by Market Conditions 
    Thousands of first-home buyers have had their deposits wiped out. 
    Rising interest rates and falling house prices contributing factors. 
    Buyers face financial strain as property values decline. 
    RBNZ's OCR hikes leading to increased mortgage costs. 
    Economic uncertainty affecting buyer confidence. 
    Some buyers forced to delay or abandon home purchase plans. 
    Market conditions continue to challenge first-home buyers.  
    Read the article

Seven Tips to Ease Mortgage Pressure
    Refinance to a lower interest rate if possible. 
    Extend the loan term to reduce monthly payments. 
    Make extra repayments when affordable to reduce principal. 
    Consolidate debt to manage payments more efficiently. 
    Rent out a room or part of the property for additional income. 
    Review and cut discretionary spending to free up funds. 
    Seek financial advice for personalised strategies.    
    Read the article

Builder Sentenced for Forgery and Fake Licensure 
    Builder sentenced for forgery and pretending to be licensed. 
    Forged documents included false credentials and insurance certificates. 
    Offences occurred over several years while conducting building work. 
    Customers believed they were hiring a qualified professional. 
    Investigation revealed lack of proper qualifications and licensure. 
    Builder fined and given a community-based sentence. 
    Case highlights importance of verifying credentials for building projects.  
    Read the article

Kiwibank Faces Criminal Charges Over AML/CFT Failures 
    Kiwibank facing criminal charges related to AML/CFT compliance. 
    Serious charges concern anti-money laundering and countering financing of terrorism failures. 
    Investigation by the Department of Internal Affairs revealed breaches. 
    Charges involve insufficient monitoring of transactions and customer due diligence. 
    Potential penalties include significant fines and reputational damage. 
    Kiwibank acknowledges the issues and is working to address compliance gaps. 
    Case underscores the importance of robust AML/CFT measures in financial institutions.  
    Read the article

Christchurch Requests Government Funding for Community Housing
    Christchurch seeks government funding for secure community housing. 
    City council emphasises the need for stable housing for vulnerable residents. 
    Proposal includes building new housing units and upgrading existing ones. 
    Aim is to provide long-term, affordable housing solutions. 
    Funding request part of a broader strategy to address housing shortages. 
    Community housing seen as essential for social stability and well-being. 
    Local government highlights the urgent need for investment in housing.   
    Read the article

Flood-Damaged Homes Remain Unresolved, Causing Homeowner Frustration
    Flood-damaged homes remain in limbo with no resolution in sight. 
    Homeowners frustrated by delays in repairs and compensation. 
    Insurance companies slow to process claims and provide settlements. 
    Government assistance programmes not meeting homeowner expectations. 
    Many affected properties still uninhabitable months after the flood. 
    Residents experiencing financial and emotional strain due to the uncertainty. 
    Calls for more efficient and transparent handling of flood recovery efforts.  
    Read the article

Major Banks Cut Rates, ANZ Revises Economic Forecast 
    Major banks announce cuts to mortgage and deposit rates. 
    ANZ revises economic forecast, predicting slower growth. 
    Rate cuts aimed at stimulating housing market and consumer spending. 
    RBNZ's OCR decisions influencing bank rate adjustments. 
    Borrowers may benefit from lower mortgage costs. 
    Savers face reduced returns on deposit accounts. 
    Economic outlook remains uncertain with mixed signals.  

The information provided in this article is for general informational purposes only and should not be considered legal advice. We make no representations or warranties about the accuracy, completeness, or suitability of the information, and we do not accept any liability for any loss or damage that may arise from your use of the content. It is essential to consult with a qualified legal professional for advice tailored to your specific situation.

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