The reason why there are fewer houses for sale is simply that very few people really have to sell. That and fewer people leaving for overseas and more immigrants. It was the same in 2007 when the GFC struck. House sales dropped but prices hardly moved. You cant have full employment, record exports, confidence at a very high level and a recession all at the same time. That does not compute. House values almost 14 per cent above 2007 Peak CATHERINE HARRIS 06/06/2014 House values rose 8.2 per cent last month compared with May last year, but the pace of annual growth continues to slow. Values rose 8.4 per cent in April and 8.8 per cent in March, QVs residential housing price index shows. The national house value averaged $471,791 last month, creeping up 0.7 per cent in past three months. While house values are now nearly 14 per cent above the previous market peak in 2007, economists say a lack of supply is the main factor holding prices up. Sales volumes around the country were 10 to 15 per cent lower than in May last year, which could be a normal winter seasonal effect but it could also be a precursor to values dropping, QV spokeswoman Andrea Rush said. ASB economist Christina Leung said Kiwis were generally seeing a decline in house market activity, but the price declines have been fairly muted and thats due to the housing supply being very low. link: stuff.co.nz/business/money/10126727/Property-values-rising-at-a-lesser-pace
Posted on: Fri, 06 Jun 2014 00:52:54 +0000
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