NZ property prices heat up

Several New Zealand property experts are concerned that the housing market is starting to heat up beyond expected levels and are concerned that it is approaching bubble territory. Latest figures from the Real Estate Institute of New Zealand show that the national average house price hit record levels last month smashing the previous record held since March and is now recorded at $372,000. Other than the general residential property sector prices of real estate defined as rural and lifestyle properties are also climbing and sales totalled during the last three months are 10 per cent beyond those reached during the same period in 2011 and values are around 20 per cent higher than twelve months ago. Many experts believe the markets should be closely monitored to avoid the type of situation seen in Norway and Canada and expect the Reserve Bank to adjust the Official Cash Rate accordingly to keep the condition under control.