One months statistics doesn’t mean much.
Just like shares, averages or medians go up and down from month to month.
It’s the trend that matters, and trends in the property market don’t show up for at least 5-6 months.
We will know the trend better by mid year at the earliest.
By the way, show me the bank that will lend 80% long term on other investments such as shares.
Jonno Ingerson, QV.co.nz research director said national house values were up 2.2 over the past three months.
“This means they are now 12.8 per cent above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 7.9 per cent and values remain below the 2007 peak by 2.8 per cent,” he said.
The Reserve Bank introduced loan-to-value mortgage lending restrictions on Oct. 1 on concern rapidly accelerating house prices in Auckland and Christchurch may lead to an asset bubble and cause financial instability. The central bank is expected to start hiking interest rates from next month to cool the economy as inflation accelerates.