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Housing crisis worsens in Wellington

Author
Newstalk ZB staff ,
Publish Date
Fri, 15 Jul 2016, 12:30PM

Housing crisis worsens in Wellington

Author
Newstalk ZB staff ,
Publish Date
Fri, 15 Jul 2016, 12:30PM

The housing crisis isn't just limited to Auckland - there are hardly any houses for sale in Wellington and it's driving prices up.

Latest figures from the Real Estate Institute show Wellington has the lowest number of houses on offer in the country, pushing the average house price up by 17 percent from June last year.

REINZ Wellington regional director Euon Murrell said severe demand is being created by the limited supply and first home buyers are missing out - just yesterday there were 17 offers on one Wellington home.

The Real Estate Institute of New Zealand has released its figures for last month and national house prices, excluding Auckland, rose by 13.4 percent in the year to June, going from $340,000 to $385,500.

In contrast, Auckland showed an 8.7 percent year-on-year increase with the median price going from $755,000 to $821,000 in the same period.

Auckland median house prices have risen in the past year, but not as much as they have nationwide.

The median price in Auckland last month rose by nine percent to $821,000, compared to June last year.

However, across New Zealand the median sale price last month was 11.1 percent higher than the same month last year.

The Labour Party's collated data to create an online interactive housing map, which it says shows 98 percent of New Zealanders are affected by housing prices rising faster than wages.

But Building and Housing Minister Nick Smith is disputing those assertions.

READ MORE: Govt: Labour's 'try hard' website not credible

He said there are areas, such as Invercargill, Kawerau, or Timaru, where houses are very affordable, particularly with the record low interest rates.

He said a comparison of wage and house prices needs to be considered alongside interest rates, and needs to be taken over the longer term.

Mr Smith said the scenario in Auckland is very different to that in Waimate, or Invercargill, in terms of house prices, and that Labour is "doing a disservice to New Zealanders with these brash claims."

 

 

 

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