As much as we like to see the values of our properties increase, it is not healthy to have increases go over the top. Firstly it invites a price correction, and secondly it invites interference and subsequent distortions by the authorities. Gentle inflation over time is very healthy. Excessive inflation is bad for ones financial health.
Another big rise in property values
Residential property values rose 8.4 per cent in September over the year before, and 2.6 per cent in the past three months, valuation service QV said today.
House prices were now 9.2 per cent above the previous market peak of 2007, although when adjusted for inflation they were 4.9 per cent below the peak.
The inflation-adjusted annual increase was 7.7 per cent.
Auckland’s red-hot market continued to soar, up 13.6 per cent year on year and 21 per cent above-peak. Adjusted for inflation, prices were 12.9 per cent higher than the year before and 5.6 per cent above the market peak.
The market in Auckland and Christchurch continued to move independently of the rest of the country, said QV’s research director, Jonno Ingerson.
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