- As Auckland house prices continue to rise, so too do fears of a bust – with the risks increasing daily, according to a financial expert.
Martin Hawes said negative equity – when a home is worth less than the money owed on it, was a distinct possibility if the trend continued.
Reserve Bank measures have had little success in reining in the market, with house price growth in New Zealand’s largest city starting to accelerate again.
According to figures from QV, the market has increased 15.4 percent year on year and 3.3 percent over the past three months – pushing the average house price to $955,793 in May.
More on the Auckland housing market
Photo: RNZ / Kim Baker Wilson
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