Auckland market “bursting back to life”
After months of watching demand in the Auckland housing market ease, the latest decision from the Reserve Bank to cut rates to an historic low saw a rebound in March housing figures.
Westpac chief economist Dominick Stephens went on the record saying March's strong housing figures showed Auckland house prices had "exploded back into life" after several months of slowdown.
Rising house prices are not just restricted to Auckland either - housing markets across almost the whole of New Zealand are ramping up, which indicates that low interest rates are playing a role.
Many economists are now speculating if the Reserve Bank will act to try and curb house price growth by either increasing loan to value ratios in the regions which are currently 10 per cent, enforcing banks to hold more capital, or introducing a completely new restriction; lending based on debt to income ratios.
It will be interesting to see what unfolds in the months ahead.