Too soon to draw conclusions: Alexander
He said house prices would continue to rise as the imbalance between demand and supply at current prices showed no sign of letting up.
He also expected the gains to spread outside Auckland and Christchurch.
“We are not sure how long-lasting the depressing effects of the October 1 rule changes for low-deposit buying will be. We have a suspicion that a shock factor has artificially depressed market activity and many buyers will return to the market this year.”
He said no data was available to predict when that might happen, or to what intensity. The 80,000-odd houses changing hands a year was not high by historic standards, he said, and more activity growth was likely.
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