Reserve Bank talks down prospect of another housing boom
House prices rose 4.4% in the past four months and the rising net migration and pick-up in property prices was helping underpin the country's economic recovery, Governor Alan Bollard said. Still, in the resurgence in the sector could threaten household savings and undermine the rebalancing of the economy required to return the economy to sustainable growth.
"We've seen house prices fall peak-to-trough around 10% or 11%, whereas three months ago we were expecting around a 16% fall," Assistant Governor John McDermott said.
"One of the key factors behind that is the limited number of listings, and there's a good chance over spring that that may very well may change."
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