Tony Alexander Compares Christchurch With the Rest of the Country | Ep. 186

In this episode, Tony Alexander joins Ed and Andrew on the podcast. 

Tony Alexander was the Chief Economist at BNZ for almost 25 years and is one of the most highly regarded economists in the country. After leaving the bank late last year, Tony became an independent economist and now provides commentary around the country and is a highly sought after speaker.

During this first episode, Tony breaks down how the Christchurch property market compares to the rest of the country. 

On the 24th October 2019, Tony released a series of graphs comparing each region's median house price with the long term average with the rest of the country. 

That analysis shows that Canterbury is currently about 20% below its average position compared to the rest of the country. 

If Canterbury's fundamental underlying value remains constant, then we would expect there to be a correction in the Canterbury market allowing room for "catch up growth". 

Catch up growth occurs when one region looks relatively cheap compared to others, so investors and prospective property buyers begin to bid the price up. 

Of course, you need to take these types of analyses with a grain of salt, so Tony walks us through what to watch out for when considering this analysis.

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