Auckland Property

Background information

• The Property Cycle Indicator is prepared from an analysis of changes in house sales,price movements, and the time taken for properties to sel

l• The monthly data is sourced from the Real Institute of New Zealand

• The Property Cycle Indicator runs from minus-10 to plus-10

• A Property Cycle Indicator value of -10 shows a strong downturn, while +10 shows a strong upturn in the housing market

• Lower sales volumes are usually the first indicator that a market upturn is coming toan end, followed by properties taking longer to sel

l• House prices are usually the last variable to change direction

• House prices may still be rising, even though the Property Cycle Index is negativeand showing a downturn

By incorporating the three variables, the Property Cycle Indicator gives a much better, andearlier, indication of shifts in the market