The Old Bubble Housing Values Are History

Posted on … Cantabrians UNITE facebook

The Old Bubble Housing Values Are History …

Liz McDonald of The Press reports … MEDIAN HOUSE PRICE FALLS 6% (month on month) …

http://www.stuff.co.nz/the-press/business/your-property/8292891/Median-house-price-falls-6pc

It is now increasingly understood, the days of artificial housing supply scarcities, with the associated values, are coming to a close.

As this year’s 9th Annual Demographia International Housing Affordability Survey ( www.demographia.com ) clearly illustrates, Christchurch with its Median Multiple of 6.6, is rated “severely unaffordable”.

This unnecessary burden has seriously stalled the recovery.

74% of the major metros of Australia are now more affordable than Christchurch (and Auckland). On a population basis, 7 through 10 time more residential consents have been issues in the adjoining Counties of Selwyn and Waimakariri.

Normal affordable housing markets do not exceed a Median Multiple of 3.0…requiring initial mortgage loads of 2.5 times annual household income.

Throughout 2012, the Government and in particular Deputy Prime Minister Bill English, made it “crystal clear” that impediments to new housing supply are going to be dealt with effectively - with an appropriate focus on land supply, infrastructure financing, process and construction costs (access via www.PerformanceUrbanPlanning.org ).

Mr English again reinforced this important message within the Introduction to this year’s Demographia Survey – released Monday 21 January ( www.demographia.com ).

By mid week, Nick Smith had been appointed Minister of Housing and Chris Tremain to the Local Government portfolio.

Phil Heatley and Kate Wilkinson had been removed from Ministerial portfolios.

At the end of the week Prime Minister Key again reinforced the Governments intentions, with respect to Local Government and housing, in a speech to the North Harbour Club.

Last Sunday, Smith and Tremain released a discussion paper on one of the four aspects to this issue - infrastructure financing.

The problems with a specific focus on Christchurch, were clearly set out by the writer within an article HOUSTON: WE HAVE A HOUSING AFFORDABILITY PROBLEM March 2010 … some 6 months prior to the first earthquake events 4 September 2010 …

http://www.interest.co.nz/news/49029/opinion-houston-we-have-housing-affordability-problem

…and an outline of the solutions with respect to Christchurch, are clearly set out within Cantabrians Unite CHRISTCHURCH: THE WAY FORWARD …

http://www.scoop.co.nz/stories/AK1206/S00251/christchurch-the-way-forward.htm

As the Television One Colmar Brunton Poll of 3 December 2012 made clear … GOVERNMENT SHOULD ACT TO LOWER HOUSE PRICES … 62% of all and 75% of young New Zealanders are demanding the Government act effectively to allow affordable housing be provided.

http://tvnz.co.nz/national-news/govt-should-act-lower-house-prices-poll-5257810

The Government has got the message “load and clear”.

New Zealanders are acutely aware now, of the costs to themselves and their families of being “mortgage slaves” … unnecessarily. And too … that initial mortgage loads should not exceed about 2.5 times annual household income.

Hugh Pavletich
Coordinator – Cantabrians Unite
http://www.cantabriansunite.co.nz/
http://www.performanceurbanplanning.org/
http://www.demographia.com/dhi.pdf

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