What will happen to house prices this year? Major bank changes its mind
ASB has revised its house price forecast for this year, taking it from predicting the largest increases of any of the main banks to the bottom of the table.
For this year, ANZ expects house prices to rise 6%, BNZ 6.8%, Westpac 7.2% and Infometrics 5.6%.
Treasury expects 3% growth.
ASB had predicted more than 9% but chief economist Nick Tuffley said that had been revised down to 3.4% for this year and 5.1% for 2026.
Wait.
What?
9% to 3.4%?
That’s not ‘revised’ that’s a whole new number altogether.
To go from such highs of expectation and drop it by almost 2/3rds is either an enormous fuck up or a signal of a far harder economic crash coming.
I do not believe we are ready for this Jelly.
Meanwhile, the Banks keep reaping billion dollar profits…
ANZ defends $2.1b profit: ‘Making a fair return for our shareholders’
The country’s biggest bank is again defending its massive profits in the face of parliamentary scrutiny, saying it reflects the size of the business.
New Zealand’s major banks fronted MPs today, as the Parliamentary inquiry into banking competition continues.
ANZ reported a full-year profit of almost $2.1 billion last year and chief executive Antonia Watson said she understood the perceptions around its large profit.
“Our profitability is around about our cost of capital, and I think it’s a very fair profit, but I can absolutely see why people think that’s a big number.”
…Fuck the Banks.
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Thank goodness the banks are still strong and profitable
. They employ thousands themselves and keep the businesses going who employ many others workers.Thesexall pay tax and keep us going . Banks failing was the beginning of the depression which was a disaster for the World and ultimately caused WW2
We can bitch all we like but we sold our banks back in the day so whos fault is it really .
I kid you not last year I stood in a que of over 20 punters in an ANZ and they only had one teller at counter. They had a three loans officers chatting in a side office and one guy floating on the que asking if he could help. I told him he could put some more tellers on. His response was to angrily tell me the qued people were quote “stupid”, they didn’t want them there and they should do banking at home. These were people, withdrawing pension money, depositing cash, discussing their accounts, English as a second language speakers changing currencies, people needing a banking service.
“Our profitability is around about the cost of capital” Hmm…you mean the capital that is created out of thin air every time you write up a mortgage…what’s not to like about writing your own rules around the creation of money!
Where do you get your information from.Banks lend from the funds held as interest bearing deposits .They can only lend up to 90 percent of their holdings at rhe moment .No thin air .
Your understanding is about 200 years out of date. banks don’t operate in the same manner as household accounts and familial loans.
That’s probably the most ignorant comment I ever read on TDB.
At one stage banks could lend up to 25 x their capital if it was in residential mortgages.
If what you said were true banks gross margin would be the difference between the weighted average lending rate and the weighted average term deposit rate, about 1.2% and they would make losses in the billions.
Educate yourself Trev before making a fool of yourself.
Read about Basel I II and III, Capital Adequacy Ratios and capital requirements stipulated by RBNZ.
N Q R, Mark Carney, Governor of the Bank of England ( and maybe the next P M of Canada) let the cat out of the bag with the following.
“Firstly & most significantly; the electronic deposits that commercial banks create when they extend loans to borrowers ( mortgages), accounting for fully 80% of money in the system.
The private financial system cannot create money without limit, but is limited by competition,constrained by prudential regulation.
In other words they hold the mortgage over the asset & if it all goes tits up then they have first dibs on the money, just like if the bank is squeezed we will all take a haircut.
The banksters are in full control with the govt backing!
True not thin air. Just no money until a bank makes a sale, sells a loan.
Banks making obscene profits and yet they are lobbying to reduce their compulsory cash equity levels, because it’s forcing them to pass the ‘cost” of holding it on the consumer.
You have to admire their hide.
Slippery bastards !
NZ annual gdp per capita $49,000.
$1000 per capita bank profits exported to Australian banks in turn owned by US banks.
Every man, woman, child and baby, pay $1000 per year profit to US shareholders and hedge funds.
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