Quote of the day

. . . One of the reasons why you probably haven’t had a significant correction is because over the last 45 years there’s probably been a general view that houses are not overvalued relative to a whole lot of different factors. My point is that the market, in the end, assesses when housing is massively overvalued compared to fundamentals, not politicians. – John Key

This entry was posted on Wednesday, July 22nd, 2015 at 7:00 am and is filed under housing, politics, quotes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to Quote of the day

  1. JC's avatar JC says:
    22/07/2015 at 10:22 am

    Back in 1974 there was a sign in one of the local real estate offices.. it was of an old bent man with long beard and walking stock with the words…
    “This is the young man who was waiting for house prices to fall”.

    Well, not quite. Our first home in Masterton was built in 1969 for $8000. We purchased it in 1974 for $24,000 but in 1980 we sold it for just $29,000.

    The start of the Great Split had occurred where many provincial towns that were servicing the rural community simply couldn’t pay the wages that more integrated and diversified cities could and shortly after the Wairarapa was being called “Death Valley”.

    Here’s another thing.. our home was 106 sq meters compared to the average NZ home of today (2010 on) of 205.. so nearly double the area and double the size of the average European home.

    http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10725186

    After Australia we have the biggest (average) houses in the world.

    http://www.smh.com.au/business/property/australian-homes-still-the-worlds-biggest-20110821-1j5ev.html

    Somewhere else I read the cost of NZ housing is $1700 per sq m so there’s an extra $170,000 per house compared to 40 years ago. You might call it the cost of modern expectations for a Pakeha family with 1.5 kids compared to 3-4 kids back in the day.

    JC

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