Is 2010 set to be a boom year?
Westpac is predicting that the NZ economy will take off in 2010. Recently releasing a report called “This Time Its Different”, the banks economist’s outline why NZ’s recovery will be so good. The main reasons for this are the behaviours of the key factors:
– Assets, particularly housing and shares, are rebounding strongly.
– NZ is experiencing a mini-migration boom
– There is a dramatic shortfall in new houses being built, which will create a multi-year source of economic growth.
– The inventory cycle is extremely low and re-stocking will create growth
– Business & consumer confidence, the yield curve and other economic indicators are looking stronger than in previous economic recoveries.
The bank also warns those pessimists looking at credit, employment levels, business closures and mortgagee sales will find that they miss the first year of economic recovery as these are all classic lag factors.
Most New Zealanders would agree that things are improving and unlikely to slip backwards again. The NZ Herald report that 55% of kiwis believe John Key’s government is doing a good job and Key himself has hovered between 50% and 60% as being the best person for the top spot.
We are definitely noticing a more positive outlook from home buyers, helped by stable house prices. The graph above shows median house sale prices around NZ from November 2006 until now. Perhaps “Boom” is too strong a word, but 2010 is without doubt going to be a good year.
Filed under: REAL ESTATE | Tagged: Real Estate