Better quality demands helped fuel house prices: Reserve Bank

Better quality demands helped fuel house prices: Reserve Bank
Reserve Bank researcher Andrew Coleman says house price surges are often caused by interest rate movements. (Image: BusinessDesk)
Jenny Ruth
Demand for better quality housing, which cannot be quickly met from new supply, is a major reason for unsustainable house prices, says a Reserve Bank of New Zealand paper by researcher Andrew Coleman.The paper also argues that temporary house price surges are often caused by interest rate movements and that the decline in global rates over the last two decades is “likely to have been a factor in booming housing markets around the world and in New Zealand”.NZ experienced the most rapid increase in real house prices in the last 30 yea...

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