With interest rates low and maybe going lower it’s no wonder that property is becoming more popular than ever. I trust we do not go into an uncontrollable “bubble” phase as it invites the politicians to intervene to meet populist but uninformed demand.
Property values continued to strengthen in October, edging up 1.9 per cent in the past three months nationally, Quotable Value said today.
A late spring surge in buyer interest and sales had pushed the national average price up to $420,048, 5.7 per cent higher than a year ago.
QV has changed its methodology slightly and prices in the last three months relate to its index, rather than the average sales price.
Jonno Ingerson, QV.co.nz’s research director, said a lack of listings was still holding the market back, particularly in Auckland and Canterbury where housing was limited.
Although those cities were driving up the price, “there are some signs that other main centres and provincial cities are increasing in value also”.
All the main provincial centres improved in the last three months, except for Wanganui and Invercargill which eased slightly, and Whangarei which fell 1.3 per cent.
Values in the wider Auckland area have risen 3.3 per cent over the last three months, and 9.2 per cent in the past year.
QV operations manager Kerry Stewart said in Auckland good properties were attracting “numerous interested buyers, with auctions especially proving successful for many, with multiple bidders not uncommon.
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