[vosper]

ITT: Lots of people from overseas wondering how New Zealand's mortgage and housing market works.

This post is wrong, we're not in a recessionary spiral. Households (and banks!) are overall doing fine. Unemployment is at record lows, wages are rising faster than inflation, non-performing (ie in default) mortgages are at 0.2% of all mortgages (lower than GFC), mortgages are stress-tested to higher levels than we're seeing. Banks are extremely healthy (making money hand over fist).

Consumer confidence is low, but it's low in defiance of reality.

For more see here: https://thekaka.substack.com/p/incomes-are-rising-faster-tha...