Average house prices in New Zealand have hit a new high, reaching $925,000, a 23.8% annual rise, as the Prime Minister said the government is "determined" to tackle housing affordability.
According to ANZ economists Sharon Zollner and Finn Robinson: "Annual house price inflation is past the peak and on a monthly basis, November price gains were the second-lowest we've seen since the end of lockdown in 2020.
"Housing headwinds are starting to be felt and we expect that house prices will struggle to grow much further as we head into 2022. We're not yet forecasting any significant declines in house prices, but it's a downside risk that is well within the realms of possibility as mortgage rates rise and tighter regulations reduce lending growth," they added.
However, as per Real Estate Institute data published on Monday, national prices soared from $747,000 in November 2020 to $925,000 last month. The average price in Auckland rose 26% annually from $1,030,000 last November to $1.3m last month, reports the New Zealand Herald.
When asked about the country’s housing policy, Prime Minister Jacinda Ardern said the government was "using all the tools available,” including support for first time home buyers, changes to tax settings and bolstering supply. "We are determined to see a change in housing," Ardern added.
"No one is arguing that a collapse in the housing would be acceptable, but we cannot afford to see year on year these dramatic increases in prices".
All seven Auckland districts had average price hikes, whilst six hit average highs, with only the Franklin District not included.
Jen Baird, REINZ, chief executive, said: "The market has settled back into its stride, returning to business as near-usual. November shows an active market where property prices continue to increase, stimulated by demand as New Zealand prepared to leave alert levels behind.
"We're seeing a firm property market, with all regions experiencing annual growth and 24 territorial authorities reaching new record medians.”
She concluded: "While the supply versus demand imbalance continues to push prices up, across New Zealand inventory levels increased 5.1% annually and listings increased 9%, providing buyers more choice and giving reluctant sellers confidence that if they take their current property to market, they will be able to buy their next one.”
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