House sales edged higher in August, led by the strength in the Auckland housing market, as turnover in New Zealand's largest city reached levels not seen since the last property boom.
ASB economist Jane Turner said improved confidence and low interest rates had provided support to the gradual nationwide recovery but the Auckland market continued to outperform, with sales up 25% on year-ago levels.
Nationwide sales were up 16% and turnover remained consistent with 2010 levels. Canterbury turnover remained subdued, although that likely reflected supply constraints.
"As the rebuild starts to make meaningful progress, this should support recovery in house sales in the region," she said.
To date, the Reserve Bank had remained comfortable with the degree of housing market activity and the pick-up in house price inflation.
Reserve Bank governor Alan Bollard makes his final official cash rate announcement tomorrow. Market expectations are that the OCR will remain at 2.5% well into next year - even with the arrival of the new governor, Graeme Wheeler.
