There is widespread awareness now of the way regional housing markets are rising strongly, and that Auckland has not finished its push higher. With the Reserve Bank expected to cut interest rates later this month and again in June there will clearly be more property demand coming soon from investors – maybe less so first home buyers for whom the problem is not really the interest rate but the property cost and getting a deposit together.
For the interests of those contemplating the regions we include a set of graphs published in the Weekly Overview a number of times over the past one and a half decades comparing regional house prices with the NZ average. You can form your own view of whether a region looks like it is due to kick up – but keep in mind projected population growth. Experience of previous cycles tells us that people often over-estimate how many Aucklanders and retiring people will go to the regions.