What first home buyers and investors need to know about the falling property market

<p>Each week BusinessDesk and the NZ Herald’s Cooking the Books podcast tackles a different money problem. Today, it’s what to make of the prediction that house prices will fall further. Hosted by Frances Cook.</p> <p>Behind the headlines of the Government’s Budget, there’s a bunch of nerdy stuff that can help us make better decisions with our money.</p> <p>At the same time as saying what the Government is going to spend its cash on, they also release documents and forecasts, showing how the wheels are turning in our economy.</p> <p>So the latest release with what Treasury had to say about housing was pretty interesting.</p> <p>It’s expecting house prices fall 13.4% by the time we hit June 30th, the end of the financial year.</p> <p>Then it’s predicting another 4.6% drop next year. If that happened, from the top to the bottom of the market, house prices will have fallen 21.3% all together.</p> <p>After that? A slow, slow climb back in house prices until 2027, of around 3% each year.</p> <p>It’s also picked up a drop in investors buying homes to rent.</p> <p>What’s behind this? Higher interest rates, and low wage growth.</p> <p>An interesting note there, if you’re finding life expensive, is that Treasury also thinks interest rates will start falling later this year.</p> <p>All very interesting stuff, but what should you be doing about it? Whether you’re a first home buyer, or an investor, here are some strategies.</p> <p>For the latest podcast I talked to Mark Harris, managing director, NZ Sotheby’s International Realty.</p> <p>If you have a question about this podcast, or a question you'd like answered in the next one, come and talk to me about it.</p> <p>I'm on <a href="https://www.facebook.com/FrancesCookNZ/">Facebook here</a>, <a href="https://www.instagram.com/francescooknz/">Instagram her</a>e, and <a href="https://twitter.com/FrancesCook">Twitter here</a>.</p><p>See <a href="https://omnystudio.com/listener">omnystudio.com/listener</a> for privacy information.</p>