Zoom Out To Lunch
Bernard & Jarrod: How far might house prices fall?
Bernard Hickey zooms out to lunch with Kiwibank chief economist Jarrod Kerr to talk about the IMF's global recession call and how the Covid-19 crisis might affect asset prices, including house prices here
In their latest daily 'Bernard Zooms out to lunch with Jarrod' video, Bernard Hickey and Jarrod Kerr talk about the IMF's latest forecast that the Covid-19 'Great Lockdown' global economic downturn could be the worst since the Great Depression.
They also talk about the responses of central banks and Governments to the crisis, and whether they will soften the blow enough to bolster asset prices. The special guest in this episode is Simon O’Grady, chief investment officer at Kiwi Wealth, who sees the glass as half full for global markets in the long run, but sees the potential for another leg downwards.
Bernard and Jarrod then talk about how house prices in New Zealand may be affected, including a look at the forecast from the Kiwieconomics' team that house prices could fall around 10-20 percent over the next year, before rebounding into 2022 and 2023.
This is part of a daily 'Bernard and Jarrod Zoom out for Lunch' webinar series during the lockdown.
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