Property price plunge predictions ridiculous, says economist

With the housing market seeming to have easily fended off the worst predictions of its fall, at least for now, the doomsayers have come in for some derision.

In his Weekly Overview commentary out today, BNZ chief economist Tony Alexander - emphasising the views were his own - was generally positive about the prospects for housing.

The housing market was recovering, although the upturn could not be strong for a while yet if at all this cycle, he said.

Dwelling sales had jumped and consents were now growing and he expected they would continue to do so for the next two to three years, particularly given New Zealand's housing shortage.

"And that is one reason we have so strongly argued against the silly forecasts from some wayward people of house prices falling 30-40 per cent in New Zealand," said Alexander.

"We have a supply-demand imbalance at current prices with insufficient dwellings."

To read the full NZ Herald article click here

Posted: 30 Jul 2009

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