Since the beginning of the current house price upswing in mid-2012, nationwide house prices have risen 33 percent--underpinned by rapid house price inflation in Auckland and post-earthquake accommodation shortages in Christchurch, but more modest house price inflation elsewhere (figure 1).
Consequently, the most recent housing market upswing started from a high level of real house prices relative to history.
The link between house prices in Auckland and those in other regions was particularly evident in the Auckland-driven upswing of the mid-1990s.
Likewise, in the latest upswing, house price inflation has picked up recently in these regions.
However, during the most recent upswing, house prices in greater Wellington have been flat.