Housing market looks better from a distance

Relax - we're up in the long term. Prices might be down right now but New Zealand's housing stock has doubled in value in the past decade.

Latest house-price drops pale compared with the rises we have enjoyed over 10 years.

The Economist's global house price survey has ranked New Zealand as one of the worst-performing markets over the past few months, falling 6.8 per cent last year.

However, this is offset by it being one of the fastest-growing in the boom times since 1997. Our house values rose 105 per cent between 1987-2008 and have only dipped recently. Many analysts predict the market will bottom out later this year before strengthening.

Peter Thompson, Barfoot & Thompson director, said price changes had not been as dramatic in New Zealand as many people thought.

To read the full NZ Herald story click here

Posted: 26 Feb 2009

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