RBNZ expects 4.5% house price growth in 2025

The Reserve Bank is expecting house prices in New Zealand to rise about 4.5% this year but that’s a much more modest increase than has been the case historically, according to RBNZ assistant governor for money Karen Silk.

Silk told parliament’s finance and expenditure committee (FEC) that we are starting to see house prices stabilize at about the top end of what RBNZ considers to be sustainable.

A number of factors will constrain house prices from rising further, particularly the RBNZ’s debt-to-income ratio restrictions (DTIs), Silk said.

RBNZ introduced DTIs in the middle of last year.