New Zealand House Prices Continue To Rise In May



House prices in New Zealand continued to rise for the second consecutive month in May while sales volume declined, figures from Quotable Value, QV, showed Friday. The QV Residential Price Movement Index rose 8.2 percent year-over-year in May. The index stood 13.9 percent higher than the previous market peak of 2007. After adjusting for inflation, house prices fell 6.6 percent year-over-year and remained 2.2 percent below the 2007 peak. "Sales volumes around the country are 10 to 15 percent lower than they were this time last year which could be a normal winter seasonal effect but it could also be a precursor to values dropping," said QV National Spokesperson Andrea Rush. "The LVR lending restrictions continue to have an effect in many of the regions with activity significantly slower at the entry level end of the market."

News are provided by InstaForex.