Spare a thought for New Zealand, where CoreLogic today recorded 1.8% growth in November, with values up an extraordinary 28.4% year-on-year:
The average property value in New Zealand is now an eye-watering $978,401, with Auckland ($1,402,845) and Wellington ($1,114,979) both topping one million dollars.
Over the year to the end of November, the average value of New Zealand homes rose $218,388, with the average home in country’s largest market – Auckland – soaring by $286,890.
Values have also soared across every provincial market:
As noted last week, the RBNZ has taken action to slow the market by lifting the cash rate and tightening macro-prudential mortgage controls.
Accordingly, I am expecting a price correction to take hold next year.
Whenever there is a fast run-up in prices, there is inevitably a correction that follows.