Latest / Best of Business / Matt Ball: Property Investors Federation expert on house prices dropping in January

Transcript

Matt Ball: Property Investors Federation expert on house prices dropping in January · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talk zed B.
• 0:12
  Speaker 1: Follow this and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 2: Now, the property market seems to have missed the memo
• 0:19
  Speaker 2: about economic green shoots. New data out from IREA and
• 0:23
  Speaker 2: Z the Real Estate Institute shows a drop in both
• 0:25
  Speaker 2: the house prices and the sales. The house price indexes
• 0:27
  Speaker 2: down zero point seven percent of where it was this
• 0:29
  Speaker 2: time last year. National sales were down five point four
• 0:32
  Speaker 2: percent on last month. Matt Ball is from the Property
• 0:35
  Speaker 2: Investors Federation and with us Evening Matt Hey, Heather, Now,
• 0:39
  Speaker 2: is this just January of slow? It's always the season?
• 0:42
  Speaker 3: All thing? Is that?
• 0:43
  Speaker 2: What's going on here?
• 0:44
  Speaker 4: Oh? Look, I wouldn't get too fixated on what happens
• 0:47
  Speaker 4: month to month.
• 0:47
  Speaker 3: I think what's more important is the bigger picture.
• 0:51
  Speaker 4: It does look like we're going to have a reasonably
• 0:53
  Speaker 4: flat housing market for a little while. Some people have
• 0:55
  Speaker 4: predicted maybe two percent growth this year. And it's all
• 0:58
  Speaker 4: about the macros. It's supply and demand. There's more supply
• 1:02
  Speaker 4: than a lot of places and less demand. Yeah, that
• 1:05
  Speaker 4: is what drives it.
• 1:06
  Speaker 2: This is the migration data, right, This is feeds back
• 1:08
  Speaker 2: into the number of people. But add to that as well.
• 1:10
  Speaker 2: Do you not think that what is playing a role
• 1:12
  Speaker 2: here is the expectations of an OCR lift.
• 1:17
  Speaker 4: Absolutely, I think that is damping things down a wee bit. Yes,
• 1:21
  Speaker 4: but it's still good buying conditions. Like if you're a
• 1:23
  Speaker 4: first time buyer, now still a pretty good time to
• 1:26
  Speaker 4: get into the market. Also, if you're a property investor,
• 1:29
  Speaker 4: it's never a bad time to buy. If you do
• 1:32
  Speaker 4: your mass or do you make sure the fundamentals are right,
• 1:35
  Speaker 4: you can get some growth out of it and get
• 1:37
  Speaker 4: the good cash load, it's a good time to buy it.
• 1:39
  Speaker 3: So you know, I wouldn't be too sad.
• 1:43
  Speaker 2: What about the election? How much of that is causing
• 1:46
  Speaker 2: people to sit back a little bit?
• 1:50
  Speaker 5: Yes, I agree the election would definitely give people pause.
• 1:54
  Speaker 5: It might be a bit early for that effect. Although
• 1:56
  Speaker 5: with a pole so tight though, I want to Night's bolt.
• 2:00
  Speaker 5: With tight poles, people might be sort of pulling back
• 2:03
  Speaker 5: a little bit. That's probably more going to affect your investors.
• 2:06
  Speaker 4: I'd be worried that Labour's going to come back and
• 2:08
  Speaker 4: then remove the interest of auctibility again, but I would
• 2:11
  Speaker 4: have thought first time buyers wouldn't be too worried about that.
• 2:14
  Speaker 2: Now where are you sitting on. I mean, see, the
• 2:16
  Speaker 2: predictions are two four percent five percent growth in the
• 2:19
  Speaker 2: housing market this year.
• 2:20
  Speaker 1: Where do you use it?
• 2:20
  Speaker 4: Yep, I'd be at the lower end of the range.
• 2:23
  Speaker 4: I think more like two percent. There's plenty of supply,
• 2:27
  Speaker 4: particularly in Auckland and Wellington, demand as low, migration as
• 2:30
  Speaker 4: low as you pointed out in Wellington, know that.
• 2:33
  Speaker 3: Loss of jobs.
• 2:34
  Speaker 4: But then again, if you're in the South Island, christ Church,
• 2:38
  Speaker 4: Otago and Southland are doing pretty well.
• 2:41
  Speaker 3: And I note that the targo in Southland they're.
• 2:43
  Speaker 4: Actually up above the peak price now, so there are
• 2:46
  Speaker 4: parts of the country that are doing well.
• 2:48
  Speaker 5: Yeah.
• 2:48
  Speaker 2: Okay, hey, Matt, thank you very much. I really appreciate
• 2:50
  Speaker 2: your insight. That's Matt Bull, Properly Investors Federation Advocacy Manager.
• 2:54
  Speaker 1: For more from News Talks b listen live on air
• 2:57
  Speaker 1: or online, and keep our shows with you wherever you
• 3:00
  Speaker 1: go with our podcasts on iHeartRadio.