The cost of building a new home's starting to stabilise. 

Figures from QV CostBuilder show the average cost to build a three-bedroom home in main centres has risen by 1.8% for the year, and 0.3% this quarter.  

It compares to an annual average increase of nearly 5% last December, and nearly 10% last June. 

Newstalk ZB’s Resident Builder Pete Wolfkamp told Mike Hosking that the main difficulty builders were facing over the last years were prices rising after they’d been locked into a fixed term contract. 

He said that it puts enormous pressure on projects to keep their costs to a reasonable level, which was incredibly difficult. 

LISTEN ABOVE