House price moderation won’t be sustained. Instead, house price rises would soar even higher due to the continued imbalance between supply & demand.
• The Reserve Bank has warned price increases in the NZ housing market could resume as supply shortages continue.
• There may be a moderation of house price rises in the recent months due to lending restrictions, but it won’t be sustained.
• In February, NZ’s avg. house price was more than 50% above the last peak in 2007, although prices rose just over 1% in 3 months, w/ Auckland & Hamilton prices easing.
• Wheeler said the economy was weaker than expected at the end of 2016, but the growth outlook remains positive, supported by on-going accommodative monetary policy, strong population growth, & high levels of household spending and construction activity.
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