Shortage of high quality homes for
sale in Auckland causes jump in property prices; rents rising faster
than salaries.
A property expert says a tight
housing market is positive for the economy.
Auckland real estate figures show that a shortage of listings for high
quality homes is causing a jump in property prices.
Massey University property studies professor Bob Hargreaves says the
recent housing boom has been caused by homeowners either trading up or
downsizing their properties.
He says the situation makes it harder for renters to get into the
housing market. In addition, rents are increasing faster than
salaries.
But Professor Hargreaves says the buoyant market has created an
economic cycle known as the wealth effect, whereby property owners
become confident consumers, due to the rising value of their homes.
© 2003 NZCity, IRN
