Following on from Bernard Hickey’s dire predictions a few days ago, the BNZ economists have come out saying that property stocks in New Zealand are 30% over-valued on average.
The Bank isn’t saying that prices will fall by 30% but it’s not a large step from overvaluation to correction is it?
We believe house prices risk falling by more than the 10 per cent we already presume for this year
And quote of the week goes to the silver lining finders also from the bank who say;
…let’s also bear in mind the good news, in that many potential home owners, long squeezed out of the market, stand to be big benefactors
I’m sure those faced with mortgagee sales will be stoked to know that at least someone stands to gain in these turbulent times
