Yearbook 2022
End year T wrap-up holds clues for 2022 property market PROPERTY
he total value of residential real estate reached $1.72 trillion at the end of Q4 2021, up from $1.35 trillion at the end of 2020, with mortgages secured against 19% of that value, and the other 81% household equity. These figures come from CoreLogic NZ’s latest Property Market & Economic Update.
The property market likely saw peak rate of growth late in 2021, following a raft of political interventions designed to cool the overheated market, CoreLogic Chief Property Economist Kelvin Davidson says
74 propertyandbuild.com
Kelvin Davidson CoreLogic Senior Property Economist www.corelogic.co.nz
Despite seeming quite sound at that headline level, household debt is high relative to income. To some extent the debt has only been sustainable recently because of low mortgage rates. However, OCR increases and rising home loan interest rates mean households are going to have to adjust their finances fairly quickly to ensure they stay on an even keel with the lending environment changing for everyone. Owner-occupiers now face a much smaller availability of low-deposit loans, while the CCCFA regulations have caused far more disruption than expected. All borrowers are having to face up to the reality of significant mortgage rate increases too, with further rate hikes expected. While any further rate rises
