Average Auckland house price rose above NZ$600,000 for 1st time in October, Barfoot & Thompson says, reaching NZ$618,707

Its just getting crazier, isnt it???

Reserve Bank missing in action (or inaction).

No clearer sign that the old one trick pony circus (OCR, and inflation target) is no longer fit for  purpose, if it ever was.

That puts Central Auckland @18.5% increase on the year.

Truly a wonderful start to the week.

Lets hope the rest of Auckland can have some good price gains also next year rather than just central Auckland. If prices rise 18.5% in one year that could be the start of a good bubble upwards and any good rises towards the top of affordability I will be looking to cash in.

massey here we come.

Well that's put me off buying for another 6 months :)

Leave Auckland now while property is still affordable elsewhere in the country or Australia closes the door.

Whats the best growth area in Auckland over the next 1-2 years ?

I am going to say this till either someone listens or I am blue in the face. Ban all foreign landlords and non-resident investment in residential property, then watch the market find its true worth!!

Where are your figures that show how foreign buyers are influencing the market?

Perhaps frustration is manifesting itself as xenophobia in some people.

Anyone still think Olly Newland was wrong?

The Auckland market is scorching hot. When people are greedy be fearful, and when they're fearful be greedy.

It really is crazy out there! Greed and fear everywhere! SOLD stickers all around.

Olly was right!

I'm sitting on the sidelines for now watching my paper profits and rents happily increase. Not a good time trying to buy

It will slow leading up to Xmas and with the new listings coming onto the market in the new year.......but then again it may not....... :)

It will not slow down- it will get even more hectic as better weather and more free time becomes available over the holidays.

The avarage price will reach $700,000 within 6 months.

And who is going to buy these overpriced houses when owners need to sell up or retire?

Fewer and fewer people will choose to take on these extreme levels of debt to buy a house.

To see your future, watch Vancouver and Aussie.   Think I'll sit this one out.  Enjoy your paper profits...for now.  They don't count until the cash is in your hands, following a sucessful closing. 

Looks like China's market topping http://online.wsj.com/article/SB100008723963904444459045780439913715581…

China operating at stall speed

Seems few people have figured out currency flows.  While NZD strengthens, it makes out exports more expensive for others, so they buy less.  Makes paying your mortgage harder, too.  Aussie banks loves those Kiwi mortgage profits!  Interest rates will be lowered again to continue the madness, I predict, as I have been saying for some time.  Eventually all countries will be at 0%, not by choice.  It always ends the same. 

Its great at the moment.   Property is realising the dream for many with the boom in our cities.  Considering many parts of the world are in recession us kiwi's know when to have a boom in the economy with house price appreciation. We can forget about the rest of the world problems with US Fiscal Cliff, Israel V's Iran = Higher oil prices, Greece Exit of Euro and collapse of the EU and China hard landing 2014. When this all happens we can ignore this and continue to have a housing boom in NZ. Rock on low interest rates.

Len !   - do something before it really Browns off the poor first home seekers. Maybe a Muldoonist intervention is called for e.g an Auckland House Price Reduction and Compulsory Urban Land Aquisition Amendent Bill  would  do the trick.    Hugh or Bernard could help us with the fine print,especially the  bits needing house price forecasting...

Or get Wheeler to smack the OCR up 2% and see what happens

Canadian bank downgrades, due to personal debt levels, now in the works

Australian average household debt is worse - Aussie banks will need Kiwi profits to survive!  Make sure you make those mortgage payments on time!  Australia needs your money! 

A huge part of recent record bank profits, on a per capita basis, puts NZ input at the top.  Thank you New Zealand!

Canadians feeling smug-but it's all group-think, from an ex-pat's perspective

Household debt not much better in New Zealand.  Do you really think that if Canada and Australia have a correction, that we will be excluded, for some special reason?

Yee Haa !!

Now is the time to make that moove..... all you  lil' critters out thar

Grab that Chineeeese "funny munny" while you can, by selling your overpriced, mouldy, damp centraal Auuckland propurteee ....and head for them hills !

Say good bye to the banks....now that my favorit bank has posseed up and left town on the black hoss..... grab some land n rustle up some grits on da fire with no mortgaaage an live happilee ever aftar !  .

.......but seriously, there are two things that would stop this stupidity BUT they won't happpen ....

1. minimum LVR at 20% (banks would hate it) 

2. 15% tax on purchase price for overseas investors not living in enzud ....Hong Kong has done this BUT our beloved leader has already tied up the FTA with China ... so that won't happen as well.

We live in stupid times .............. but the "Sheeple' can't see the wood for the trees.

Demand from mainland immigrants now accounts for 29% of all new homes in Vancouver, China Daily reports.

In London, China buyers accounted for 28% of all prime London property sales and 54% by sales value in the prime central London area, where houses go for 5 million pounds ($8 million) on average, according to a recent report by Savills research.

(forbes 6/20/2011)

Olly’s predictions are coming true.

Read his Feb 2012 column here:



“The property investment market waits for no one and the current statistics already underline the fact. The coming improvement in prices, rents and profits will likely escalate very rapidly to make up time and consequently leaving behind the fearful and the timid”.



http://www.interest.co.nz/property/57976/opinion-i-have-good-news-you-now-time-come-out-hiding-and-get-stuck-property-investin

These reports are extremely suspect. Specific data selected, interpreted to suit and skewed to spruk the property market back to G.F.C levels.

Don’t be a sucker! The signs are all wrong - property and banks boom; but real wealth - exports and employment shrink, while cost of living soars; surely anyone with sense would realise something’s out of kilter -  not right?

Better to sit back and let the desperate and greedy commit to the huge debt of worry.

Besides, inevitably housing supply well increase to meet societies need for affordable shelter.

How can an average Kiwi with 50k income afford to liven Ak?

x

SWG Report:

The Government’s role



Clearly, there are serious questions to be asked about New Zealand’s economic policy and how we got into this mess. Why was it not better designed and managed, and more focussed, coordinated and strategic? Did the electorate simply get what it voted for, without realising what was really happening, or have New Zealanders not been well served over the years?





Underlining the current difficult situation, the government is spending at an unsustainable level and running large deficits (the opposite of saving). As a result, it is borrowing a hefty $300 million a week. It needs to return the Budget to a surplus of no less than 2% of GDP as soon as possible.





Looking ahead over the next 20 years or so, the government will face increasing costs from the effects of an ageing population. If the government is to keep its borrowing within a sustainable level (as it must) over this period, its options are to: substantially increase tax revenue, reduce government spending, or increase government sector productivity and performance. The first two options are clearly unpalatable. However, modelling shows that if the government can lift its performance and increase productivity by 2% a year for five years and 1% thereafter, there would be no need to raise taxes or cut government services. The SWG strongly recommends this.





On other government policy issues, SWG recommendations include:





- A much more strategic and integrated approach to policy generally.





- Serious consideration of the impact of the level and variability of immigration on national saving, and the impact that this might have on the living standards of New Zealanders. There are indications that our high immigration rate has pushed up government spending, house prices and business borrowing.





- Improving data on household and business saving.





http://www.treasury.govt.nz/publications/reviews-consultation/savingsworkinggroup/pdfs/swg-report-jan11.pdf

Bruce Jesson talking about the 1987 stockmarket crash. Is Auckland residential property any different?

“One of the things I found astonishing at the time was how the entire country was sucked into a speculative whirlpool. It should have been obvious to anyone who could read a balance sheet that what was occurring was a destructive madness….But generally speaking, New Zealand society moved in unison, with business, politicians and the media all shouting the market up and contributing to the ultimate debacle….Middle class New Zealand revealed itself to be greedy and gullible. The financial press showed itself incompetent.”

Bigdaddy calls 700k average in 6months - another 14% increase.

Could even be on the low side looking at Octobers 1 month increase of 5.6%

RAKON cutting nz jobs and moving more work to China. Most likely auck based jobs will go.

High nz dollar, money flowing into nz and into property, result is more and more companies leaving.

Shareholders loving it though.