It is always difficult to predict the next twelve months but some trends are starting to emerge and some earlier predictions are coming true.

I believe house prices, in the main centres, will continue to appreciate, especially Auckland which has already started to occur. This is due both to supply and demand. There are less new dwellings becoming available as there are fewer being built (especially in the apartment market), demand is increasing due to higher immigration figures, more Kiwis returning home and a natural population increase.

Interest rates will go up but in the second part of the year only as the Reserve Bank honors it’s commitment to the nation when it said it would keep rates low. The amount they go up all depends on the recovery happening, how strong it is and if unemployment is starting to fall.

Finance will be difficult to obtain for self employed, businesses and construction projects due to the demise of virtually all second tier lenders. This is a serious issue for the country and will hinder our future growth.

Each month the international credit crisis moves further into the background and hopefully next year it can be consigned to part of global economic history.