Quote Originally Posted by SBQ View Post
The big problem is mortgage resets into the new higher rates. Unlike in N. America, you can't get a 30 or 40 year mortgage fixed term rate in NZ. Typically max is 5 years and all those that mortgage 2 - 5 years ago will be in for a rude awakening if they were mortgaged to the max.

I prefer to use the street level barometer on house price sales. Down my street there's been a house gone for sale over ; first listed 2 months ago and went for auction after another auction. It's clear the listing was passed and sellers in today's market are refusing to sell for less. Likewise in the past year i've seen more and more houses being 'passed' in as they don't meet the reserve price. Interestingly QV valuations sent in the mail has placed our neighbourhood as a whopping +54% increase in the past 3 years. If next year or so houses continue to lose their ground, then i would be quick at filing for a reassessment as a way to lower the rates bill.
Just because your house value goes down , doesn’t mean your rates will .