Infometrics forecasts 12% rise in house prices over next three years because of low interest rates and housing shortages; Auckland prices to rise 16%, it says
August 11, 2011 – 07:45pm, Bernard Hickey
Economic research group Infometrics has forecast New Zealand house prices will rise 12% over the next three years because of low interest rates and a shortage of housing supply.
Infometrics’ annual report for QBE Lenders’ Mortgage Insurance (QBE LMI) also forecast a 16% rise in Auckland house prices by June 2014 and a rise in national prices over the next year of 6% despite current uncertainty on global markets.
“Auckland has been at the forefront of the improvement in the housing market since October last year,” CEO of QBE LMI Ian Graham said.
“A better than expected economic performance, low mortgage rates and lower building activity continue to underpin prices in this market,” Graham said of Auckland’s housing market.