Housing still booming but less frothy

Sunday 6 June 2004

The housing boom is far from over, but the latest figures suggest a little less froth.

By The Landlord

House prices rose an estimated 4% in the three months ended March, the 11th successive quarter in which they have risen and bringing the annual increase to 22%, according to the latest figures from Quotable Value.

The annual increase was down from nearly 24% for calendar 2003 but the quarterly increase for the three months ended December was revised from the previously published 4.9% to 6.3%. That was still below the 7.3% increase recorded in the September quarter.

Blue Hancock of QV Valuations says the June quarter is likely to still show further increases in house values but that the rate of increase is beginning to reduce.

"Important factors like the continued downward trend in net migration and decreasing affordability due to high house-price-to-income ratios could continue to reduce buyer demand in the short term," Hancock says.

Read More - Opens in a new window
Commenting is closed

House Prices

House price drops are short-lived - Alexander

Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.


Industrial holdings leave Provincia in strong position

Tales of strife and problems abound in the commercial property world these days, but the impact of the Covid-19 pandemic has not been as devastating for all commercial players.


OCR reaction: Reserve Bank open to lower, negative rates

Economists say that the Reserve Bank has left the door open to lower or even negative rates, as it kept the official cash rate on hold in its Monetary Policy Statement (MPS) today.

Site by PHP Developer