29 May 2012

No housing boom here - NZREI

12:27 pm on 29 May 2012

The Real Estate Institute says latest research on the housing market backs the Reserve Bank Governor's view that there is no boom, despite house prices bouncing back to record levels.

The institute commissioned out the research after rising house prices and volumes sparked speculation that the market is on the cusp of another boom, similar to the years between 2001 - 2007.

Twenty years of data on sales volumes, house prices and the average number of days to sell a house, were analysed.

NZREI chief executive Helen O'Sullivan says these three key factors back its belief that there is little sign of house price inflation and no boom.

Ms O'Sullivan says pressure is building in Auckland and Christchurch because of a shortage of housing rather than a rush on the market.