NZ Property market heat no surprise
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New Zealand's household incomes have increased by a third in the last four years, while average house prices have risen nationally by only 1.3 per cent in the same period, making recent real estate market buoyancy unsurprising, says Finance Minister Bill English.
Appearing before parliament's finance and expenditure select committee on Wednesday, Mr English appeared to have prepared the figures in advance for questions on the apparent heat in the Auckland housing market, where average prices have risen above pre-GFC peak levels.
'House prices on average have moved up one per cent in nominal terms. Disposable income is up a lot over that period,' he said.
'We wouldn't be surprised to see a bit more interest going back into the housing market', especially with the lowest interest rates in 40 years.
Mr English tried to bat away opposition politicians who pressed him on forecasts from the Treasury, Reserve Bank and the International Monetary Fund of an unsustainably high current account deficit with the rest of the world over coming years.
