The housing market continues to demonstrate an underlying strength and while it may plateau over winter, particularly with mortgage interest rates rising, "come spring we suspect the market will be in good shape again," Woodley says.
The Reserve Bank’s decision earlier this month to raise interest rates for the third time this year was "a blow" to homeowners and those paying off mortgages as a form of personal saving, he says.
The central bank raised its official cash rate from 5.5% to 5.75% and is expected to raise rates further later this year.
"Many people struggle with the concept that New Zealand has to have some of the world’s highest mortgage rates in the name of controlling inflation to below 3%, especially when the price of this is to sacrifice economic growth," Woodley says.
The latest Real Estate Institute figures show the national median house price rose from $242,000 in April to $248,000 in May. That was up 18.1% on the $210,000 national median price recorded in May last year.
Annual price increases range from the whopping 51% increase in Otago from $120,500 in May last year to $182,000 in May this year to the 10.7% increase in Waikato/Bay of Plenty/Gisborne from $178,000 to $197,000.
Nationally, the number of sales fell from 9,594 in April to 9,416 in May which was well down on the 11,158 houses sold in May last year. The number of days it took to sell a house rose from 27 in March and 29 in April to 30 in May. The latest Real Estate Institute figures show the national median house price rose from $242,000 in April to $248,000 in May. That was up 18.1% on the $210,000 national median price recorded in May last year.
For the record annual price increases range from the whopping 51% increase in Otago from $120,500 in May last year to $182,000 in May this year to the 10.7% increase in Waikato/Bay of Plenty/Gisborne from $178,000 to $197,000.
Nationally, the number of sales fell from 9,594 in April to 9,416 in May which was well down on the 11,158 houses sold in May last year. The number of days it took to sell a house rose from 27 in March and 29 in April to 30 in May.
