Auckland's housing market is now so out of control that prices are higher than Melbourne for the first time ever, according to Labour.
The party's housing spokesman Phil Twyford said global financial services firm UBS has calculated that at the end of the December quarter, average Auckland house prices wereA$648,176 (NZ$692,070), compared to Melbourne's A$634,890.
"Thanks to our rampant housing market and overvalued exchange rate it is now more expensive to buy a house in Auckland than it is in Melbourne,'' Mr Twyford said.
"Owning a house is now out of reach for tens of thousands of Kiwis and loan to value ratios are making it even harder to save for a mortgage. With interest rates set to rise soon, it's going to be even more difficult.''
