House prices stayed flat nationally last month, but Auckland hit a major spring resurgence, leaving one economist saying the Reserve Bank would be extremely unhappy with the ever-flourishing residential market.
Tuesday, October 25th 2005, 7:41AM
by The Landlord
Real Estate Institute figures showed an unchanged national median of $290,000 but a rise of more than $8000 in Auckland metropolitan area prices from $375,000 to $383,250.
Westpac chief economist Brendan O'Donovan said a rise in the official cash rate this month was "virtually a done deal" and would probably be followed by another in December.
"The Reserve Bank won't like the figures," he said, referring to governor Alan Bollard's Friday statement that the country was spending too much and rising house prices could not continue.
Mr O'Donovan noted strong price increases in many provinces, and calculated house sale volumes were up 6 per cent between August and last month which he said was a large jump in turnover. Prices were up 12.7 per cent in Auckland since September last year but 23 per cent in the provinces, he calculated.
