Median house price hits record $350K

[essence]

http://www.stuff.co.nz/4096261a10.html

[muppet]

Auckland house prices fall, slowing growth elsewhere
12:00PM Friday June 15, 2007

The national median house price increased to a record $350,000 in May, but prices in Auckland fell, according to figures released today.

Prices in the influential Auckland market fell from $452,000 in April to $450,000 in May. Growth continued in the rest of the country but was slower than in previous months.

The Real Estate Institute said the national median house price rose $1000 last month.

Reinz president Murray Cleland said the $350,000 median price was "something of a milestone".

He noted despite higher prices in most regions, there were signs the surge in prices over the first half of this year was slowing.

"Whether it's the gathering interest rate clouds or the market anticipating the increase in the Official Cash Rate last week, the market is showing signs of taking a breather."

The Reserve Bank has hiked the Official Cash Rate three times this year to a record 8.0 per cent, mainly to try to quell inflation generated by rising house prices.

The median price is up 14.75 per cent for the year. It has risen sharply in the previous three months -- from $335,000 in February to $343,500 in March, then $349,000 in April.

The number of days to sell a house rose from 28 in April to 30 in May, indicative of a slowing market.

The metropolitan Auckland median price fell from $459,000 to $451,000, Auckland City fell from $510,000 to $492,000 and North Shore City fell from $540,000 to $535,000.

In Wellington, the median price rose 1.9 per cent to $385,000.

Wellington moved into the second spot in national year-on-year price growth figures with a 22.2 per cent increase.

Southland continued to lead the annual table with a 36.15 per cent increase, while Taranaki was now third with a 20.34 per cent year rise to $281,000.

Of the 12 real estate regions surveyed, seven experienced increases while five had falls.


Northland continued its recent strong performance with the median price up from $320,000 to $330,000.

Waikato and Bay of Plenty was a little stronger, up from $312,500 to $315,000, but Hawke's Bay eased back from $280,000 to $277,000.

Manawatu-Wanganui fell back after recent strong growth from $230,000 in April to $222,000 in May.

Nelson-Marlborough eased from $330,300 to $328,000 and Canterbury and Westland fell from $310,000 to $305,000.

Prices in Central Otago Lakes jumped from $430,000 to $485,000, largely as a result of relatively high values and lower volumes.

Otago prices rose from $227,000 to $240,000 and Southland from $164,500 to $177,000.

National sales recovered from the Easter holiday-influenced figure of 8194 in April to 9285 in May, but were down on the 9642 in May 2006.

- NZPA, NZ HERALD STAFF

http://www.nzherald.co.nz/section/1/story.cfm?c_id=1&objectid=10445889

[Libertas]

However, an easing in house price inflation may give some comfort to the Reserve Bank, which has hiked the Official Cash Rate three times this year to a record 8.0 per cent, mainly to try to quell inflation generated by rising house prices.

Inflation isn't caused by rising house prices. Rising house prices is an effect of money creation. Bollard and the reserve bank are trying to fool us with all this talk of property investment being the problem. Investors are mealy defenders of the value of their money (whether they relies it or not) We are directly countering their debt-money-creating intentions by profiting from it. House price inflation - therefor every mum and dad inventor jumping on the band wagon won't go away until the cause of inflation goes away. Namely money printing & money creation from fractional reserve banking.

Unfortunately housing is almost overcooked and inflation like the ripple effect is spreading through the economy. As GK has said on another thread - food will be next. Milk has just gone up. Meat and proteins will be next. I guess eventually rents will be bumped up but this seems to be only the case in Wellington for now. If the government stopped spending and the reserve bank put a halt on the money supply then... pop goes the bubble! Labor might leave the country in such a mess for National that we may see them back again after only 3 years!