Bleak house
Do we laugh, cry or simply shake our heads that when growth in Auckland house prices finally ends, after many years of a sharp upward trajectory, economists talk as if this is a bad thing? Yet it is not just economists. Everyone who has borrowed huge sums – because that was the only way they could buy a house – worries about prices falling. Most concerned are those whose equity in their home would be wiped out if our largest city saw a correction such as those recently in Melbourne and Sydney. So far, that is not forecast, because of the simple fact that Australia has an oversupply of houses whereas New Zealand, and particularly Auckland, remains chronically undersupplied. By Kiwibank’s latest analysis, the country is short of 130,000 houses, up from…