House prices spiked in October as Reserve Bank anticipates drop

PHOTO: The average national house price is $970,174, according to the latest figures from CoreLogic. (File image) Photo: RNZ / Claire Eastham-Farrelly

The pace of rising house prices unexpectedly quickened last month, just as the head of the Reserve Bank says they should start falling.

ANZ expects Reserve Bank to raise official cash rate rapidly over next year

CoreLogic’s House Price Index showed the average national house price rose by 2.1 percent in October on the month before, after slowing in the previous five months.

CoreLogic head of research Nick Goodall put the spike down to Covid-19 lockdowns affecting listings.

“Already low levels of supply dropped further during this time and while inventory levels have since started to recover, advertised supply is likely lower now than otherwise may have been, which would have placed renewed upwards pressure on prices.”

The average national price was $970,174, for an annual rise of 28.8 percent, and record highs in many centres including Auckland, Tauranga, Wellington, and Christchurch.