ZT: New Zealand Stops a Housing Bubble

NewLynnHse

http://www.bloomberg.com/news/20 ... housing-bubble.html

Perhaps the Federal Reserve has something to learn from the central bank of New Zealand about how to manage a mortgage market. Unlike the Fed, which has been sharply criticized for having failed to keep the U.S. housing bubble from expanding, the Reserve Bank of New Zealand is sounding the alarm over rising housing prices and imposing limits on mortgages.


Risks associated with excessive increases in house prices, and the potential that the bubble might burst, have become a major threat to the country’s financial system, the Reserve Bank warns.

The New Zealand housing market is indeed heating up. Over the past year, house prices in Auckland have risen 17 percent, and in Christchurch, they’re up 8 percent. Those two markets account for half of home sales across the country.

Relative to income, New Zealand housing prices are now more than 20 percent above their historical average. International organizations such as the International Monetary Fund and the Organization for Economic Cooperation and Development share the Reserve Bank’s concerns that real estate may be overvalued.

So what is the central bank in New Zealand doing about it? In October, it put a limit on high loan-to-value mortgages. Each bank must see that no more than 10 percent of its new mortgages finance more than 80 percent of a house’s value. Before the limit took effect, such mortgages had reached 30 percent of new originations.

Such limits on high loan-to-value mortgages are becoming more common internationally; Canada, Israel, Singapore and Sweden are among the countries using them. And they have been found effective “in containing exuberant mortgage loan growth, speculative real estate transactions, and house price accelerations,” according a June 2013 IMF review of studies. During downswings, the review found, such measures can reduce “fire-sale dynamics” and loan losses.


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hitomi

taomibaobao 发表于 2013-11-22 15:49
小老鼠是大户。。。

你也不是小户阿{:8_485:}

taomibaobao

小老鼠是大户。。。

klwss

NewLynnHse 发表于 2013-11-22 14:43
没有那个复杂啦，我是有面包屑就捡，不管涨还是跌

你是拿走整個麵包，剩下一地麵包屑吧

NewLynnHse

klwss 发表于 2013-11-22 14:41
老鼠總是兩頭站，看來你的策略就是漲好久了才買，開始跌就賣。。
要麽更簡單，買了就打死不賣，媳婦熬成婆 ...

没有那个复杂啦，我是有面包屑就捡，不管涨还是跌

klwss

老鼠總是兩頭站，看來你的策略就是漲好久了才買，開始跌就賣。。
要麽更簡單，買了就打死不賣，媳婦熬成婆~~