CoreLogic analysis shows that pockets of negative equity are beginning to emerge across New Zealand. Wellington has the greatest share of first home buyers (FHB) in negative equity, with 38% of FHBs that purchased during the final three months of 2021 currently underwater. Significant numbers are also “close to negative equity” (if prices fall by $10,000) or “threatened by negative equity” (if prices fall by between $10,000 and $50,000). For example, in Auckland, the proportion in negative equity would rise to 15% if prices fell by an additional $50,000, representing only a 5% decline in values. In its latest Statement on Monetary Policy, the Reserve Bank of New Zealand (RBNZ) downgraded its house price forecasts.

Source: New Zealand Herald August 24, 2022 14:36 UTC