Auckland housing market

[Aaron]

If some one else could explain the great housing disconnect to me that would be lovely.

If by disconnect you mean the disconnect between the price and what you actually get. I would suggest you have been fooled by central banks and inflation. Although it doesn't translate well below is a copy and paste from the nz reserve banks own inflation calculator.

Housing
that cost $100,000.00
in quarter 4 of 2012
would have cost
$146,890.16
in quarter 4 of 2016
Total percentage change
46.9%
Number of years difference
4.00
Compound average annual rate
10.1%
Decline in purchasing power
31.9%
Index value for 2012 quarter 4 is
1586.9
Index value for 2016 quarter 4 is
2331.0

So over the last four years your deposit has lost 31.9% housing purchasing power. Although if you owned a house you would be quite happy with this.
So what is the reserve bank doing about this situation http://www.rbnz.govt.nz/monetary-pol...rate-decisions
Well today they did sweet FA and will probably continue on that path because all other developed nations are following the same playbook.
For comparison I show below wage price inflation.

Wages
of $100,000.00
in quarter 4 of 2012
would have been
$110,210.57
in quarter 4 of 2016
Total percentage change
10.2%
Number of years difference
4.00
Compound average annual rate
2.5%
Decline in purchasing power
9.3%
Index value for 2012 quarter 4 is
25.2
Index value for 2016 quarter 4 is
27.7

I see a disconnect between a 9.3% and a 31.9% decline in purchasing power.