The Economy Hub: Why Auckland’s new house price boom is a good thing

  • The resurgence of Auckland house prices could be good news in the short term, with the wealth effect making home owners more likely to spend money and stimulate the economy through the dairy slump.

But the risk of increased borrowing and prices heading into bubble territory will be worrying for the Reserve Bank.

REINZ figures released this week showed the median price of the more than 3000 houses sold in the Auckland region last month surged $70,000 to $820,000, the first time it’s broken $800,000.