House prices continued to rise in October despite the Reserve Bank's best efforts to put the brakes on the housing market.
Monday, November 21st 2005, 5:37AM
by The Landlord
Figures out today from the Real Estate Institute of New Zealand (REINZ) show the national median house price rose to a record $295,000 in October, from $290,000 in September and $252,500 in October last year.
The Reserve Bank governor Alan Bollard has been increasingly vocal with his concerns about the hot housing market, and last month raised the official cash rate by 25 basis points to 7 per cent. Further rises are picked for December.
REINZ national president Howard Morley said it would become clearer next month whether last month's rise has had any impact on the market.
"Certainly higher interest rates affect lower end and new home buyers and out experience is that the more expensive the houses the lower the mortgages and the less affected owners and buyers are by interest rate increases," he said.
