Still rising house prices fuel interest rise fears
House prices are continuing to soar, with a 12.5 per cent rise in the year ended April fuelling fears of another interest rate rise next month.
Thursday, May 19th 2005, 6:48AM
by The Landlord
Quotable Value says a buoyant late summer market helped the increase, which was up on the 12.1 per cent annual growth recorded to March and took the average national sale price to $296,175.Quotable Value 's spokesman Blue Hancock said the previous slowdown in some areas of the upper north had levelled out.
Bank of New Zealand chief economist Tony Alexander said the figures gave only a year-on-year comparison. Also Quotable Value did not yet have complete data for March and April, which could take several months to come through.
Real Estate Institute figures showed that house prices had continued to rise.
Anecdotal feedback to a fortnightly BNZ survey indicated that some buyer resistance had appeared in April.
"The top end of the Auckland market is showing some signs of weakness," Mr Alexander said.
"Some of the younger and first home buyers are finding that the prices are just too high," he said. However, there continued to be listing shortages in some parts of the country which was helping to drive prices in the short term.
"But we think it is turning," Mr Alexander said.
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