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

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Commercial

NZ proptech start-up scores major investor

Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.

Mortgages

LVR limits slow down investors

LVR speed limits continue to have a "strong effect" on investors, according to CoreLogic, after the latest Reserve Bank data showed a drop in investor borrowing.

Site by PHP Developer