Auckland housing prices back on the rise
House prices in New Zealand’s largest city of Auckland recovered in January, data released, showed, a move the central bank will be watching closely for signs the red-hot market’s moderation was only temporary.
Prices in Auckland rose 2.4 % on the month after a 1.4 % dip in December, the Real Estate Institute of New Zealand (REINZ) said on Tuesday. The rise would add more fuel to the central bank’s efforts to get debt-to-income (DTI) tools included in its options to combat the risks of an overheated property market.
The data came less than a week after the Reserve Bank of New Zealand said it would conduct an analysis of DTI limits as it lobbied the government to add the tools to the bank’s macro-prudential arsenal. New Zealand’s central bank governor Graeme Wheeler reiterated on Thursday that even if available, the bank would not use the tools unless house prices in Auckland picked up again after slowing in recent months.