More news about house price rises in Auckland. I'm still amazed that this issue has not been presented accurately by the media. Is this because they also own houses in Auckland?
The situation is this - inflation is out of control. Residential housing was dropped as a link to the CPI (Consumer Price Index) some time ago. If it was still there we'd be seeing inflation like that of the mid-1980's, not this silly 0-2% we have reported now.
It's monetary inflation, the banks are pumping cash into the system. It's ever increasing flows of cash chasing the same stock of housing. It can't go on as incomes will not be able to service the debt. New Zealand is headed for a bust.
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