Global financial institution, the International Monetary Fund (IMF) has warned that the rising housing prices might affect economic stability in New Zealand.

The IMF said that the government is taking appropriate steps to address the situation but added that the rising property prices in Auckland and other parts of the country could affect the economic growth in the country.  IMF experts have said that the property speculation could destabilize the economy of the country.

The housing prices in New Zealand have risen to its highest level ever during the previous month.  The prices of houses in the country touched record high due to the limited supply of houses.  The prices have been particularly very high due to limited supply.  Houses were on sale at $965,000 in Kingsland, $985,000 in Mount Eden, $859,000 in Point Chevalier and $945,000 in Mount Albert.

The figures released by Quotable Value showed that the total prices increased 3.2 per cent above the previous highest record of set in 2007 to about $428,692 in the country.  The figures also showed that the prices increased 1.7 per cent compared to the previous three months.  It is believed that the lower number of listings for sale or falling supply has resulted in higher prices in the country.