Auckland median house price hits $1 million for first time

For the first time, Auckland's median house price has hit $ 1 million. The Real Estate Institute data for October, just realeased, shows the median house price in our biggest city has jumped by more the 16 per cent in the last year, and nearly five percent since September. Outside of Auckland, the country's median house price rose 15 per cent to $600 thousand from $ 520 thousand in October last year. The new data comes as the Reserve Bank announces a new lending programme offering banks interest rates of almost zero, with the aim of stimulating the economy. It has also hinted it may reintroduce loan-to-value ratio restrictions on high-risk lending from March next year. Philippa discusses with Bindi Norwell, Chief Executive of the Real Estate Institute and economist Tony Alexander.