In New Zealand, the latest monthly values report from Quotable Value and new listings data from Realestate.co.nz both indicated that prices were softening around the country. However, ASB CEO Barbara Chapman has attributed the slowing market to the upcoming General Election as well as the Reserve Bank’s loan-to-value ratio restrictions.
"Right at the moment I think we've got to realise we're in the throes of an election period," Chapman told interest.co.nz. "And we do see that during an election period activity in the market can quieten down. And so I've got no concerns with where the market is at the moment. I do think that the Reserve Bank [loan-to-value ratio] restrictions have had an impact and I think that's been a good thing."
"I do think that there still is a shortage of housing in Auckland, which puts a floor on any thought of any price falls. We still need more housing stock in Auckland and that will still hold the market high," said Chapman.
