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30-08-2024, 10:20 AM
#281
"Are interest rates and home prices actually linked?"
NO THEY ARE NOT
https://www.livewiremarkets.com/wire...THE%20INSIGHTS
"Housing is always about supply. Always."
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03-09-2024, 10:41 AM
#282
 Originally Posted by kiora
It would be interesting to know what happened over covid as the supply of and demand for houses were both stopped temporarily. Supply stopped prices went up a lot, I guess it fits with this conclusion. Or maybe there could be a number of factors that affect house prices.
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03-09-2024, 12:56 PM
#283
Originally Posted by kiora
Of course they are linked. Consider an extreme example of interest rates 0.5% and watch R.E. prices. Then increase them to 100% - I think you'll see as bit of a change in the market. Interest rates and real estate prices are the opposite ends of a see-saw.
Last edited by fungus pudding; 03-09-2024 at 01:13 PM.
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05-09-2024, 04:27 PM
#284
NZ has the highest priced residential market in the world.
How many people listened to RNZ today at about 1515 hrs today.
House price appreciation in NZ has "been stupid".
BTW in my humble opinion re interest rates/home prices are they connected.
Off course they are.I could be wrong but surely high interest rates implies high inflation ?
I used to love high inflation because it killed debt.
What would be interesting is some disclosure from fungus araon kiora as to their exposure to the Res mkt.
Me over 4 decades...
Last edited by troyvdh; 05-09-2024 at 09:31 PM.
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06-09-2024, 08:01 AM
#285
Originally Posted by troyvdh
NZ has the highest priced residential market in the world.
How many people listened to RNZ today at about 1515 hrs today.
House price appreciation in NZ has "been stupid".
BTW in my humble opinion re interest rates/home prices are they connected.
Off course they are.I could be wrong but surely high interest rates implies high inflation ?
I used to love high inflation because it killed debt.
What would be interesting is some disclosure from fungus araon kiora as to their exposure to the Res mkt.
Me over 4 decades...
My exposure is roughly 2-3 decades as a homeowner and in the past a landlord and now as a concerned parent and grandparent. and reading the herald this morning as a shareholder in KPG and their new resido complex.
I was being facetious a couple of posts ago. To suggest there is no link between asset prices and interest rates is moronic in the extreme. I am angry at Adrian Orr, his totally ridiculous policies of suppressing interest rates and printing money during the pandemic lead to what might be the greatest boom in house prices NZ has ever seen. All so house prices would not drop 10% as predicted and he wanted to create the "wealth effect" (so we know Adrian thinks there is a link between interest rates and house prices). He has basically shut out or condemned the younger generation to a lifetime of debt if they want a house.
What I find funny is when landlord associations and ACT party supporters suggest it is all about supply and govt regulation and totally ignore monetary policy and the wealth effect. Supply is certainly part of the issue as is demand and my views on mass immigration (suppress wages and push up rents) are well documented on this site.
Last edited by Aaron; 06-09-2024 at 08:16 AM.
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06-09-2024, 08:28 AM
#286
Originally Posted by kiora
Re reading the article and trying to understand his point I think based on the graphs presented one of constantly rising house prices and another with interest rates jumping around he is suggesting there is no link to the two.
We have inflation targets which ensure prices always go up but the speed at which it goes up is controlled by money printing and interest rates and there is a lag effect to these levers so it seems like a bulls*it argument to me.
That is not to say supply and demand do not play a part, that would be to deny basic economic theory, but personally it seems like the economy and society has been financialised and indebted so interest rates play a bigger role.
Last edited by Aaron; 06-09-2024 at 08:31 AM.
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07-09-2024, 10:11 PM
#287
BTW did anyone on this thread listen to M Holm.
Last edited by troyvdh; 07-09-2024 at 10:40 PM.
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10-09-2024, 04:12 PM
#288
Sam Stubbs I believe is worth listening to...He addressed the housing crises on the 6 June.
It aint going to be pretty.
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11-09-2024, 10:00 AM
#289
Ouch,nice seeing an agent fronting up
"Wellington real estate agent's $200,000 loss"
https://www.stuff.co.nz/business/350...September+2024
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12-09-2024, 07:13 AM
#290
Originally Posted by kiora
Sounds like he did his figures on a 1.9% mortgage rate and expected house prices to keep rising, sounds more like a speculator than an investor. It is hard to fault the average real estate agent's optimism in housing though.
House prices and rents have fallen since the heady days of the pandemic, they did not suggest that it was a result of additional supply in the article but as he was building new I guess we could assume the additional supply was bringing the prices down, although he talked more about interest rates than the supply glut in Wellington. Adrian's ridiculous monetary settings were also being reversed, interest rates were rising maybe that affected house prices as well although don't tell the author of that ridiculous article you posted Sebastian Ferrando.
It is nice to see a risk taker, taking it on the chin instead of demanding the RBNZ save them at the expense of savers and poor people struggling with inflation.
Hey Troyvdh to which Mary Holm article do you refer, I read her regularly on a Saturday morning in the herald. Also Sam Stubbs 6 June..... where?
Last edited by Aaron; 12-09-2024 at 07:18 AM.
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