In Christchurch, the supply response has a similar range of obstacles to overcome, with the added complexity of insurance issues. It could take several years to complete the more than 10,000 homes needed. In our view the strength of housing and credit demand is not fully reflected in the aggregate credit data.
Total outstanding mortgage credit growth is increasing but still at lower rates – of around 5 to 6 percent per annum – than in the previous boom. However these growth rates are net of debt repayments which have been significantly higher in the years since the GFC.