House prices continued to edge lower in Auckland during the slowest mid -winter month and are cooling in surrounding areas. But prices remained buoyant and activity was robust in some major cities that are still benefiting from the tailwind of Auckland’s boom through 2015 and early 2016.
The outlook for interest rates also moderated through July, and the prospects of a centre-left Government likely to significantly increase housing supply and reduce tax advantages for housing also receded.
Real Estate Institute of New Zealand figures show the house price index for Auckland fell 0.5 percent in June and fell 0.3 across New Zealand. The index for Auckland is down 3.2 percent from its peak in mid 2016. Prices also fell slightly in Taranaki, Northland and Bay of Plenty. The effects of the Reserve Bank’s 40 percent deposit requirement for rental property investors is still rippling through the most highly valued cities in the market.
The outlook for interest rates also moderated through July, and the prospects of a centre-left Government likely to significantly increase housing supply and reduce tax advantages for housing also receded.
Real Estate Institute of New Zealand figures show the house price index for Auckland fell 0.5 percent in June and fell 0.3 across New Zealand. The index for Auckland is down 3.2 percent from its peak in mid 2016. Prices also fell slightly in Taranaki, Northland and Bay of Plenty. The effects of the Reserve Bank’s 40 percent deposit requirement for rental property investors is still rippling through the most highly valued cities in the market.
