Aucklanders viewing properties elsewhere
27th Jun
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Prices of New Zealand homes have escalated to a point where they are now tipping the scale just over the last peak in 2007. Concerns have been raised as to how this will impact the country in the long term, and as a result, the government has been thinking through possible management strategies.
In a speech last year to the Wellington Employers' Chamber of Commerce, Finance Minister Bill English announced that attempts will be made to curb rising house prices. He said that they pose a risk to economy recovery and stability, because of the marked increase they added to debt levels. Prices are "already high by any international standard," he said, and any further rise could create a degree of household and financial system instability when prices eventually dropped. Last month The Real Estate Institute of New Zealand reported that the national median house price had reached a record value of $400,000, primarily driven by the Auckland market.
"We will act where we can to reduce these risks," English commented.
Fortunately, no such controls are being contemplated in the US property market!