KEY POINTS:
And now for the good news: New Zealand's property market boomed again last year, is still booming now and looks set to continue into 2008.
Sales median prices were up 10.7 per cent - only slightly down on 2005, with some cheaper provinces recording 30 per cent-plus increases.
The country's strong economy, negligible unemployment, healthy migration figures and excellent job security saw naysayers confounded as house prices in even our most expensive areas continued to soar.
A Herald on Sunday analysis of the Real Estate Institute's 2006 figures showed while homes took slightly longer to sell, prices continued to climb with the most impressive results occurring at the top and the bottom ends of the market.
Auckland's North Shore waterfront suburbs saw double-figure median price growth, while working-class areas such as Manurewa and Papatoetoe led the gains.
It's New Zealand's longest and strongest property market boom in 25 years, says property analyst and adviser Kieran Trass. "It's no surprise that our market was strong last year but I didn't expect it to be quite so strong."
And for provincial areas, including Wanganui, Rotorua, Palmerston North and Gisborne, the boom is peaking only now. "The reality is these little out-of-the-way areas didn't get the same amount of growth previously," said Trass.
The Wellington region's median growth (16.7 per cent) was more than double that of Auckland (8 per cent), driven, says Trass, by investors tired of the City of Sails' high prices.
"There are 250,000 property investors in New Zealand and most buy at entry-level prices," he says. "Entry level in Auckland is about $300,000 now. In Wellington you can get a similar return for a lower price."
While some Auckland suburbs did experience a small fall, Trass says the volume of sales at the lower end of the market may be responsible.
The even better news? Experts say that 10 per cent growth could continue this year.
Trass says not even interest rate hikes will halt the growth. "Interest rates didn't move [last year] although there were many threats they would - I think everyone's given up listening now."
