"600 or 700 [thousand dollar mortgage limits for an income of $100,000], somewhere there seems to be the indication, and I think it marks a pretty big shift. This will limit house price growth in future, and really limits how many properties people can own, because you can't shift your income massively overnight."

#KelvinDavidson, Chief Property Economist, #Corelogic

https://www.rnz.co.nz/national/programmes/morningreport/audio/2018884737/house-prices-dropping-but-still-30pct-higher-than-pre-pandemic

#mortgages #housing #HousingPrices

Bank economist inadvertently admits that neoclassical economic theory has little to do with reality:

"Good to see the economic theory playing out in reality, for once."

#KelvinDavidson, Chief Property Economist, #Corelogic

https://www.rnz.co.nz/national/programmes/morningreport/audio/2018884737/house-prices-dropping-but-still-30pct-higher-than-pre-pandemic

#economics #EconomicTheory #NeoClassical #banking