Property prices continue to rise

House prices rose 1.7 per cent in November, according to figures out today from the Real Estate Institute of New Zealand (REINZ), with the national median price hitting $300,000.

This compared to $295,000 in October, and is 15.4 per cent higher than the same time last year, but slightly softer than the 16.8 per cent annual growth reported last month.

Sales volumes rose to 8513 in November from 9357 in October.

REINZ president Howard Morley said the figures showed the property market was steadying, but remained strong.

The Reserve Bank last week raised the official cash rate by 25 basis points to 7.25 per cent, in an effort to dampen the buoyant property market and rein in household spending.

Mr Morley said only a third of homeowners had a mortgage, with around 80 per cent of mortgages on fixed term interest rates. This presents a lag between when the RB raises the OCR and when homeowners feel the pinch.

Mr Morley said the high OCR was having more of an impact on farmers, business owners and business confidence than the housing market.

"This suggests that inflation is coming from all areas of the economy and not just household spending," he said.

Seven regions reported price rises, while four reported falls.

Wellington's median price rose to $315,250 from $304,500. Auckland jumped to $390,000 from $380,000. Waikato/Bay of Plenty/Gisborne rose $1000 to $275,000; Hawke's Bay jumped to $265,000 from $250,000, Manawatu/Wanganui was up to $187,000 from $183,550, Canterbury/Westland rose $10,000 to $270,000 and Southland jumped to $129,000 from $119,250.

Otago was steady at $215,000. On the downside, Nelson/Marlborough fell to $265,500 from $273,800; Central Otago Lakes fell to $400,000 from $417,000, Taranaki slipped to $205,00 from $211,000, and Northland eased to $253,500 from $256,150.

- NZPA