(File image).
Photo: RNZ / Nate McKinnon
Reserve Bank deputy governor Geoff Bascand told
Morning Report it was still early days to see the effects of the government s recent housing package, but he believed they would help alongside the bank s own measures, like reintroducing LVR restrictions.
But with prices rising 19.8 percent year on year, how long would it take before buyers are able to see the impact? Time will tell, Bascand said, adding that it depended on how people responded to the changes. I know what we re worried about from a financial stability point of view is how risky that lending is, and I guess the big thing we try to do is lean against risky lending.
It s the seventh month in a row that prices have hit a new record and Trade Me Property sales director Gavin Lloyd says they show no sign of slowing any time soon . While this will be music to the ears of homeowners, no doubt it s hard to hear for prospective buyers who have been hit with relentless price increases for months, Lloyd said.
Demand outstripping supply is a significant factor pushing prices up. Nationwide in March, demand was up 26 percent year-on-year, while supply fell 9 percent. As we have seen consistently over the past few months, demand outweighed supply in March, putting pressure on the market and resulting in ongoing price increases.
Report from RNZ
The latest Trade Me Property Price Index shows the national average asking price for a home has hit a record $805,000. Wellington experienced the highest year-on-year growth in price, with the average asking price increasing by 20 percent compared with the same month last year. Auckland prices went up 10 percent on the same time last year.
Trade Me property sales director Gavin Lloyd said the national average asking price showed an annual increase of 16 percent in the year to March, with almost every region experiencing price jumps.
Lloyd told Morning Report there was a big demand in March up by 26 percent but supply was down 9 percent.
Photo: RNZ / Nate McKinnon
Trade Me property sales director Gavin Lloyd said the national average asking price showed an annual increase of 16 percent in the year to March, with almost every region experiencing price jumps.
Wellington experienced the highest year-on-year growth in price, with the average asking price increasing by 20 percent compared with the same month last year.
Auckland prices went up 10 percent on the same time last year.
Lloyd told
Morning Report there was a big demand in March up by 26 percent and but supply was down 9 percent. We saw growth through every region except for Nelson, the West Coast, Otago and Northland. New records were set in every region. Auckland broke through the million mark.