House prices set to soar
The QBE LMI New Zealand Residential Property Overview report identified that low interest rates, combined with a shortage of new housing, will drive prices up 24% over the next three years.
Infometrics also predicts the national median house price will have climbed 10.9% by next year. Median house prices have climbed to $339,000 in the June quarter of this year, from a low of $330,000 seen in March.
The report reinforces data released over recent months that have shown the residential housing market is stabilising, after the significant downturn recorded during late 2007 and 2008.
House sales volumes are up 41% over the June quarter compared to a year earlier, attributed to the strong recovery in the downward movement in mortgage rates since mid-2008, which has significantly improved affordability of property for both investors and first home buyers.
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