ARE WE ENTERING A BUBBLE?

New high for median house price
CATHERINE HARRIS
12/12/2013

House sales weakened in November but prices continued to strengthen as restrictions on high mortgage lending moved into their second month.
The Real Estate Institute says 6961 houses sold last month, down 6.6 per cent from November last year.
However, house prices continued to hit new levels, with a national median high of $425,000.
Prices are now nearly 11 per cent higher than a year ago and 4.3 per cent above the previous record in October.
Institute chief executive Helen O’Sullivan said turnover last month was 2.7 per cent higher than in October, but that was weaker than usual.
The average increase between October and November over the past decade was usually more than 10 per cent.
Link:
http://www.stuff.co.nz/business/money/9508908/New-high-for-median-house-price

 

Posted in News & Articles | 4 Replies

4 thoughts on “ARE WE ENTERING A BUBBLE?

  1. What concerns me is how slow our leaders are in responding to what looks like becoming a housing shortage in Auckland…. a lack of supply response to increasing population and especially to rapidly increasing prices.
    Reserve bank put out a good report
    http://www.rbnz.govt.nz/research_and_publications/speeches/2013/5491417.pdf

    A scary thought is that prices keep skyrocketing upwards and then finally the floodgates are opened up for new land/ houses… ( as is starting to happen in ChCh…finally ).
    Do you think we could have a bit of a crash if it unfolds like that..??

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