Key Facts:

  • Experts predict the next six months will be challenging for New Zealand households.
  • Increasing mortgage rates, rising inflation, and supply chain issues are likely to impact housing affordability.
  • The Reserve Bank of New Zealand is expected to raise the official cash rate in the near future.
  • House price growth is likely to slow down, making it more difficult for first-time buyers to enter the market.
  • Unemployment rates are expected to rise as the government’s wage subsidy comes to an end.

Article Summary:

According to experts, New Zealand households can expect a challenging period in the next six months. Several factors are expected to affect housing affordability and overall household finances. One major concern is the increasing mortgage rates, which make it more expensive for homeowners to repay their loans. This, coupled with rising inflation and supply chain issues, could put additional pressure on household budgets.

The Reserve Bank of New Zealand is anticipated to raise the official cash rate from its record low. This move aims to combat inflation but could further impact homeowners’ ability to afford their mortgages. As a result, house price growth is predicted to slow down, making it increasingly difficult for first-time buyers to enter the market.

Another factor that could be detrimental to households is the expected rise in unemployment rates. As the government’s wage subsidy program comes to an end, some businesses may struggle to keep their employees, leading to job losses. This would add financial strain to many households across the country.

To read the full article, go to:

https://i.stuff.co.nz/business/money/300975495/economy-in-2024-next-six-months-will-be-painful-for-households