3,500 NZ first-home buyers at peak prices may take 5 years to recover lost equity due to 16% declining house prices.
CoreLogic estimates that recent first-home buyers in New Zealand may need at least five years to recover their lost equity from declining house prices, which are currently 16% below their 2021 peak. About 3,500 households bought at peak prices and now face values 20% lower. Low-equity borrowers, especially those with under a 20% deposit, confront higher interest rates and additional fees, as banks typically don’t reassess loans for properties that have lost value.
October 20, 2024
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