Dr Don's gloomy outlook for house prices
Speaking at the New Zealand Mortgage Brokers Association (NZMBA) conference about house prices, Brash says over the last three years the median house price has moved around for a small upward movement - which looks encouragingly stable.
However, he says household sector debt has grown enormously over the last 30 years from 40% at the beginning of the 80s to 160%, which means it has increased fourfold.
He says household sector debt service has also risen, though not as much because of lower interest rates, but would rise further if interest rates increase.
Brash says net immigration which has traditionally been a big driver of increases in house prices also now looks soggy.
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