NZ housing: a canary in the coalmine?

What was a significant factor driving the global house price boom, especially in New Zealand?

• Technological advancements

• Decrease in construction costs

• Pandemic policies and stimulus programs

• Increased tourism

Why is New Zealand considered a 'Canary in a coal mine' for other housing markets?

• It has the highest number of houses per capita.

• It experienced a significant house price increase and potential crash.

• It has the most affordable housing.

• It has the strictest building regulations.

What action did the New Zealand central bank take in response to changing economic conditions?

• Lowered interest rates to 0.1%

• Implemented stricter lending criteria

• Increased interest rates from 0.25% to 2.5%

• Introduced new housing subsidies

Which mortgage product has become most popular in the US, potentially reducing the impact of rate hikes?

• 30-year fixed rate mortgage

• Adjustable rate mortgage

• Interest-only mortgage

• 15-year fixed rate mortgage

What is one reason that might support housing demand despite rising mortgage rates?

• Increase in construction costs

• Decrease in population

• Shortage of houses for sale

• High unemployment rates