That's what they want to keep real estate prices from hyperinflating. Same with California, Canada, etc.. And that cools rent prices and helps young people, etc..
WELLINGTON, Nov 27 (Reuters) - A dramatic boom-bust cycle in New Zealand's housing market has left many Kiwis and investors scarred and an economy struggling to fire, turning what was once a trusted strategy for creating wealth into a period of unease and potentially smaller future returns.
New Zealand has traditionally relied on housing as an engine of growth, but the current shakeout in the property sector has been particularly telling on the economy, dragging it into contraction in three of the past five quarters.
“Two and a half years of flat to falling house prices has basically just been a heavy wet blanket on top of the economy,” said ANZ chief economist Sharon Zollner.
The current gloom in the sector is rooted in more than a decade-long affordability crisis that came to a head during the pandemic, as house values soared around 40% to sky-high levels in an 18-month period through to November 2021, fuelled by sharply lower interest rates and government stimulus.
When the bubble burst, a combination of aggressive interest rate hikes by the Reserve Bank of New Zealand and an increase in housing supply saw prices crumble by nearly 20%, and as much as 30% in some cities.
Real New Zealand house values down 31.3% since 2021 peak, economists cite ‘renewed weakness’
House sale values are continuing to fall and are now down 31.3% nationally in real or inflation-adjusted terms since the market peak in late 2021, according to Herald calculations.
That is based on Stats NZ’s data from the Consumers Price Index from October 2021 to the latest quarter to September... 2025.
The Real Estate Institute issued new data today that did not hark back to the difference in prices since the peak in 2021 but instead focused on month-to-month changes, which were only minor compared to the four-year drop.
Economists cited renewed weakness in the sector and said non-inflation-adjusted or nominal prices had fallen 15% since the peak in late 2021.
That showed that in the last two months, the seasonally adjusted REINZ House Price Index fell 0.3% and sales volumes fell 4.2%.
ANZ economists said: “Sales volumes are back below their long-run historic[al] average for this time of year”, referring to a lack of bounce from spring.
November’s activity had been weaker than the economists had expected.
Things could worsen for those hoping prices will rise.
“Renewed weakness in the housing market and the sharp increase in wholesale interest rates since the November Monetary Policy Statement [from the Reserve Bank] presents some downside risk to house prices,” ANZ said.
Westpac senior economist Satish Ranchhod said the housing market had hit an air pocket in November, with sales dropping and prices nudging down.
The overall trend in the market remains flat.
Nationally, a mixed picture emerged.
“There’s been particular softness in prices in Auckland, down 1.5% over the past year and Wellington down 2.8%,” he said.
You place anything in the hands of government it turns to shite. The US has been demonstrating this for more than 115 years. American citizens do not want to believe the truth, betrayals, corruption, theft, and why their health, finances, education, infrastructure, food, environment are all intended to keep us, enslaved in every way. This has been and is an incremental holocaust committed by all governments
The the trend is clear, but the UK seems to be much further down that rabbit hole of death than the US, closely followed by NZ, Australia and then Canada.
- UNDRIP land claims are not being pushed back on in the Courts. This is quickly becoming a land rush of private lands. People are no longer able to take out mortgages on homes where claims occur.
- 60% of all mortgages reset in the next 13 months. Almost all to higher, and many to much higher rates. Many mortgages were written with teaser rates during Covid (2008?).
- Mortgage Fraud in Canada was blown open a couple weeks ago in BC. Its all fraud, and everyone kind of knew it. This has made houses much more expensive than that they should be.
- Bond Fraud (schools etc) has also affected Canada. These are against homes, and further degrade property values with additional claims on private property (ref: Mitch Vexler).
- Tariffs and circumstance are taking out Canadian industry. Lumber is quickly dying, as is car manufacturing (ref: Stellantis). No jobs means less need for housing.
- Canada is under regulatory capture (25% of all jobs involve compliance). Regulations have now surpassed the ability of home developers to turn a profit, even a these highly artificially inflated home prices.
- Covid loans to businesses (CEBA) need to be paid back immediately. This will bankrupt many smaller businesses which are already struggling because of a slowing economy.
- Local and Provincial governments rely on high home prices to fund themselves and construction projects. Staff will be let go, further driving down the economy.
Home prices in Canada are most of the economy. Once people realize they are essentially worth nothing, who will bother taking out a mortgage... especially if they are suddenly (over the next year) 40% more? Who could even afford that. 60% of mortgages!!
Canada is in for a world of hurt, and homelessness is going to explode, causing all kinds of problems where people live.
The rush of mortgage rewrites occur around April and May. At that time, Canada will need to come to terms that its housing value is essentially nil. Banks are unstaffing the mortgage groups, and staffing up the repossession groups. Its going to be a disaster for Canada, and will ensure our tyrannical governments become even worse.
---
WORSE THAN 2010: The "Silent" Crash No One Is Talking About
The usual, scarcity and fear used to control the barnyard animals. Bring back the free energy from the aether, the tech hidden from us. Instead we are irradiated and controlled by EMF unkind to flora and fauna, and no shortage of funding for energy to run it, and the AI facilities powering the digital prison overlay. It's one big unreality show full of undiscerning participants.
Murder of rubber pigs and chickens!!
I think instead of "should well off now" should say "should sell off now"
I got it free but don't know if it is available to all . Emigration from NZ . https://www.economist.com/asia/2025/03/06/why-new-zealanders-are-emigrating-in-record-numbers?utm_content=ed-picks-image-link-2&etear=nl_special_2&utm_campaign=a.the-economist-this-weekend-xmas-dec21&utm_medium=email.internal-newsletter.np&utm_source=salesforce-marketing-cloud&utm_term=12/21/2025&utm_id=2151481
Indeed not all of them are stupid... some are leaving....
That's what they want to keep real estate prices from hyperinflating. Same with California, Canada, etc.. And that cools rent prices and helps young people, etc..
WELLINGTON, Nov 27 (Reuters) - A dramatic boom-bust cycle in New Zealand's housing market has left many Kiwis and investors scarred and an economy struggling to fire, turning what was once a trusted strategy for creating wealth into a period of unease and potentially smaller future returns.
New Zealand has traditionally relied on housing as an engine of growth, but the current shakeout in the property sector has been particularly telling on the economy, dragging it into contraction in three of the past five quarters.
“Two and a half years of flat to falling house prices has basically just been a heavy wet blanket on top of the economy,” said ANZ chief economist Sharon Zollner.
The current gloom in the sector is rooted in more than a decade-long affordability crisis that came to a head during the pandemic, as house values soared around 40% to sky-high levels in an 18-month period through to November 2021, fuelled by sharply lower interest rates and government stimulus.
When the bubble burst, a combination of aggressive interest rate hikes by the Reserve Bank of New Zealand and an increase in housing supply saw prices crumble by nearly 20%, and as much as 30% in some cities.
https://www.reuters.com/business/finance/nzs-housing-funk-sows-doubts-reliable-investment-strategy-drags-economy-2025-11-27/
No cheap energy ... kills economies... tick tock
Real New Zealand house values down 31.3% since 2021 peak, economists cite ‘renewed weakness’
House sale values are continuing to fall and are now down 31.3% nationally in real or inflation-adjusted terms since the market peak in late 2021, according to Herald calculations.
That is based on Stats NZ’s data from the Consumers Price Index from October 2021 to the latest quarter to September... 2025.
The Real Estate Institute issued new data today that did not hark back to the difference in prices since the peak in 2021 but instead focused on month-to-month changes, which were only minor compared to the four-year drop.
Economists cited renewed weakness in the sector and said non-inflation-adjusted or nominal prices had fallen 15% since the peak in late 2021.
That showed that in the last two months, the seasonally adjusted REINZ House Price Index fell 0.3% and sales volumes fell 4.2%.
ANZ economists said: “Sales volumes are back below their long-run historic[al] average for this time of year”, referring to a lack of bounce from spring.
November’s activity had been weaker than the economists had expected.
Things could worsen for those hoping prices will rise.
“Renewed weakness in the housing market and the sharp increase in wholesale interest rates since the November Monetary Policy Statement [from the Reserve Bank] presents some downside risk to house prices,” ANZ said.
Westpac senior economist Satish Ranchhod said the housing market had hit an air pocket in November, with sales dropping and prices nudging down.
The overall trend in the market remains flat.
Nationally, a mixed picture emerged.
“There’s been particular softness in prices in Auckland, down 1.5% over the past year and Wellington down 2.8%,” he said.
https://www.reddit.com/r/newzealand/comments/1pnwd9o/real_new_zealand_house_values_down_313_since_2021/
You place anything in the hands of government it turns to shite. The US has been demonstrating this for more than 115 years. American citizens do not want to believe the truth, betrayals, corruption, theft, and why their health, finances, education, infrastructure, food, environment are all intended to keep us, enslaved in every way. This has been and is an incremental holocaust committed by all governments
The the trend is clear, but the UK seems to be much further down that rabbit hole of death than the US, closely followed by NZ, Australia and then Canada.
2026 will be particularly nasty to Canada.
Why do you think 2026 will be particularly nasty to Canada?
Major economic problems in Canada:
- UNDRIP land claims are not being pushed back on in the Courts. This is quickly becoming a land rush of private lands. People are no longer able to take out mortgages on homes where claims occur.
- 60% of all mortgages reset in the next 13 months. Almost all to higher, and many to much higher rates. Many mortgages were written with teaser rates during Covid (2008?).
- Mortgage Fraud in Canada was blown open a couple weeks ago in BC. Its all fraud, and everyone kind of knew it. This has made houses much more expensive than that they should be.
- Bond Fraud (schools etc) has also affected Canada. These are against homes, and further degrade property values with additional claims on private property (ref: Mitch Vexler).
- Tariffs and circumstance are taking out Canadian industry. Lumber is quickly dying, as is car manufacturing (ref: Stellantis). No jobs means less need for housing.
- Canada is under regulatory capture (25% of all jobs involve compliance). Regulations have now surpassed the ability of home developers to turn a profit, even a these highly artificially inflated home prices.
- Covid loans to businesses (CEBA) need to be paid back immediately. This will bankrupt many smaller businesses which are already struggling because of a slowing economy.
- Local and Provincial governments rely on high home prices to fund themselves and construction projects. Staff will be let go, further driving down the economy.
Home prices in Canada are most of the economy. Once people realize they are essentially worth nothing, who will bother taking out a mortgage... especially if they are suddenly (over the next year) 40% more? Who could even afford that. 60% of mortgages!!
Canada is in for a world of hurt, and homelessness is going to explode, causing all kinds of problems where people live.
The rush of mortgage rewrites occur around April and May. At that time, Canada will need to come to terms that its housing value is essentially nil. Banks are unstaffing the mortgage groups, and staffing up the repossession groups. Its going to be a disaster for Canada, and will ensure our tyrannical governments become even worse.
---
WORSE THAN 2010: The "Silent" Crash No One Is Talking About
Mind to Spirit
https://www.youtube.com/watch?v=Y6UoSsHyCJU
Thanks for your detailed response, Java.
You believe in the totally-real Holocaust? Do you believe in the six million and the homicidal gas chambers?
FYI https://fasteddynz.substack.com/p/should-we-forgive-the-vaxxers
Duly noted, Eddy believes in the totally real thing they invented in the 1970s. It’s so true you go to jail if you dare to question it.
Ultimate NPC test, the final exam. E. Michael Jones new book on the matter is excellent.
I’m fine with the Red Cross estimates of 300k, whatever.
Great synopsis. Thanks.
The usual, scarcity and fear used to control the barnyard animals. Bring back the free energy from the aether, the tech hidden from us. Instead we are irradiated and controlled by EMF unkind to flora and fauna, and no shortage of funding for energy to run it, and the AI facilities powering the digital prison overlay. It's one big unreality show full of undiscerning participants.
Yes of course -- resources are infinite... on a finite planet.
How stupid of me....
AI does not exist.
Automated Idiocy