House prices

PHOTO: That upward trend is happening in both the regions and our main centres, according to the latest CoreLogic house price index. Source: 1 NEWS

House prices grew at their fastest level in 16 years in November.

Property research firm CoreLogic’s house price index rose 2.1 per cent last month, with the average house price hitting $769,013.

The index was more than nine per cent up on a year ago.

CoreLogic head of research Nick Goodall said the market remained driven by low supply, low interest rates and strong demand, and would not slow in the near term.

“You have to go all the way back to October 2004 to find a time of stronger monthly growth.”

The metrics used to assess the ability to get into the market also illustrated a “worsening situation”, Goodall said.

“The ratio of housing values compared to household income has jumped from 6.2 a year ago, to 6.8 at the end of [September].

“Meanwhile the average time it takes to save for a 20 per cent deposit in New Zealand is now nine years, up from 8.2 years a year ago, and the share of income dedicated towards renting is increasing as well – up from 19.8 per cent in [third quarter] 2019 to 21.2 per cent in the most recent reading.”