According to REINZ, the median house price in New Zealand’s largest city is currently around the $950,000 mark but experts predict that figure to keep climbing. The forecasted figure for the end of the year is in excess of $1 million, a rise of more than $50,000 in the last 3 months of the year. An increase that trumps the yearly earnings of most New Zealanders. Now more than ever, we need affordable housing!
And it’s not like Auckland is the only city experiencing an astronomical rise, Wellington is expected to see prices soar by over $40,000 while Christchurch is expected to achieve an increase of around $20,000. This continues the trend of the seemingly bulletproof housing market that has weathered the post-COVID recession and continues to prove economists wrong with its strong performances.
The news makes for good reading if you are a homeowner or an investor both of whom would have been expecting their properties to take a hit as was initially predicted at the start of the pandemic. The low interest rates continue to offer favourable conditions to those hoping to take their first step onto the property ladder, but the high prices make it a double-edged sword.
Experts predict that the interest rates will remain unchanged for the month of October but most of them forecasted a further dip as we progress into 2021.