Housing market experts are predicting another rise in house prices after it was revealed they'd already increased 2.6 percent in December alone.
Values rose quickly in 2020 despite the recession and pandemic, defying predictions of a massive slump. Data released by CoreLogic on Tuesday shows that trend continued right up until the end of the year, taking annual growth to 11 percent.
But it's unlikely they'll slow down. CoreLogic head of research Nick Goodall picks there'll be another 6 percent increase over the next three months.
"We're expecting things to continue as strong as they finished last year, at the start of this year as well," he says.
Last year's increase was mostly down to the same mismatch of supply and demand.
"We've got nothing available for sale, inventory is so low. We've also got really strong demand as well. The availability of credit now is very high, lots of people out there and there's desperation too for people wanting to buy property at the moment," Goodall says.
Double-digit growth hit the major cities, but some regions had a blinder - Whanganui prices are up 25 percent and Gisborne up 30 percent.
The rising prices make it all the more difficult for hopeful first home buyers like the Razasaleem family.
"Nowadays the prices of the home is really high, and it's quite a stressful process for all of us," Saher Razasaleem says.
"As soon as you step into the house to put in an offer they'll say 'oh you have to beat everyone else'," Muhammad Razasaleem adds.
The Government says it plans to address house prices this year, but until then, the only way they're going is up.
