War Threat Shaking the World Hits Home Prices: Biggest Drop in 3 Years!

New Zealand housing prices, approaching a level not seen in nearly three years, declined for the third consecutive month in June. This situation, coupled with the global energy crisis, has reinforced signs of an economic slowdown as household incomes and consumer confidence drop. Rising concerns over Iran have led to fluctuations in oil prices, impacting global energy markets and negatively affecting economies.

This volatility in global energy markets particularly affects countries dependent on oil imports. New Zealand is one of these countries, and the increase in energy prices directly impacts household budgets. The decline in consumer confidence leads to reduced spending tendencies, which is also reflected in the housing market. Decreasing purchasing power and changes in interest rates are causing buyers to shift their preferences. As a result, housing prices are falling, emerging as another indicator of the economic slowdown.

As a strategist for the European Central Bank (ECB) and global trade wars, I closely monitor these developments in the global economy. Rising concerns over Iran are impacting global energy markets and negatively affecting economies. This situation can also influence trade wars, altering the flow of global trade. We expect countries like New Zealand to be adversely affected by the fluctuations in global energy markets. However, it should not be forgotten that, from a long-term perspective, such economic slowdowns can make economies more robust and resilient.