A sea of red for the housing market. Bigger and faster falls than GFC. Wellington down 20%, Auckland down 15%.

[aleen]

@andro it's just panic, happens all the time, market weakens a tiny bit and the panic sellers dump at silly low prices.

Market strengthens a bit and the panic buyers buy at silly high prices.

It always falls too sharply, and rebounds too steeply.

It's never as bad or as good as the "experts" say it will be.

 

[jeff2112]

@aleen The property market is nothing like equities or cryptocurrencies. It generally moves very slowly on the way down, as people do everything they can to avoid selling at a loss (or even for less profit). Just because most New Zealanders have never seen a significant crash doesn't mean it can't happen.

 

[southindianvidz]

@aleen We havn't seen panic yet. Panic is when people are forced to sell because they can't afford to service their debt. Foreclosure sales are when real panic will set in. It's crazy how this whole market is kept afloat by people's religious faith that house number always go up...

 

[aedmis]

@southindianvidz I have always been a firm believer that housing will always appreciate. But recently I've learnt the truth: housing will always appreciate, as long as the central bank wants to allow it to. Apparently there are no investments that grow organicly anymore. Turns out everything truly is manipulated. Such a dissapointing realization.

 

[mariefromtexas]

@andro So where do people who are not in a position to own a house live? Ones who don’t have a deposit for a mortgage, saving for their deposit, want to live with a group of friends in the short term, have short term employment contracts? If it’s not in a rental provided by a property investor then who houses them? With the amount of people in emergency accommodation that the government are paying I don’t think they would be suited as old landlords

 

[andro]

@mariefromtexas They live in rentals and actually this is creating more rentals slowly when sellers see they aren't getting as higher price they convert it to a rental. Immigration and lack of building is the main cause for emergency housing over the past decade, that could have been offset by building more houses but when they make it so expensive to build here, then less gets built. Also airbnbs and under-utilised land is a problem too.

 

[nannalizzy]

@mariefromtexas Investors losing their shirt doesn't change the number of properties available for rent.