What annoys me is that people were expecting house prices to fall immediately. But we are still very early on in this. Demand is still higher than demand, and people currently have cash that they are now hardly getting any interest in the banks on, that they need to sink into housing, as many don't seem to see any better alternatives, and a house can't just close down taking your savings with it. People also aren't taking overseas trips, and younger people are delaying their OE and buying houses instead with the interest rates so low. So it is almost the perfect storm for house price increases. Likewise all the NZers returning, some with lots of money, allows them to snap up the stock. The reserve bank also wants house prices to continue to rise, as it makes people feel richer, and they will then more likely spend money in the economy. So we should be seeing how it looks in another year, when subsidies end (if they do) and mortgage holidays end. I know someone in Texas, and their house prices are so cheap over there, as is their price of building, compared to NZ.