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September 5

Insurer predicts shortage will lead to higher house prices

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House prices could increase by 12 per cent over the next three years, a mortgage insurer says. A report into the country's housing market, released yesterday, finds a shortage of new housing is driving property values up.

Predicted house price increases in the three years to June 2014

* Auckland: +16 per cent

* Northland: +11 per cent

* Hawkes Bay: +20 per cent

* Waikato,Bay of Plenty,Gisborne: +3 per cent Read article here