Middle-class still can't buy because of stricter lending rules and increasing interest rates.
Middle-class who FOMO'd in the last 2 years will see their interest rates double and even triple when they refinance in the next months. With inflation and cost of living rises recently, that bump up in their mortgage payments is really going to hurt.
Meanwhile, those with the cash can just scoop up houses (if/when they want to).
Silver lining is younger and future generations might not be completely and utterly f'd.
For some not so much. Talking with my landlord the other week, they said that they regretted not selling the house last year when they moved. It's lost 15k every week this year on average (according to homes.co.nz estimates). That's almost 30%.
For people like me, it's a good thing. Interest rates are higher, sure, but a smaller deposit is needed and for most people I know that have been looking to buy it's the raising of the deposit that has been the biggest hurdle.
Those with negative equity are likely to pay down debt faster rather than consuming (hang on to the car for another year, or not repaint, for example), so there is some effect on aggregate demand over time.
Middle-class still can't buy because of stricter lending rules and increasing interest rates.
Middle-class who FOMO'd in the last 2 years will see their interest rates double and even triple when they refinance in the next months. With inflation and cost of living rises recently, that bump up in their mortgage payments is really going to hurt.
Meanwhile, those with the cash can just scoop up houses (if/when they want to).
Silver lining is younger and future generations might not be completely and utterly f'd.