RBNZ signals tougher rules for investors
Reserve Bank deputy governor Grant Spencer told the Wellington branch of the NZ Institute of Valuers that growing imbalances in the housing market require policy action on a number of fronts.
New Zealand’s current housing boom is seeing house prices increasing at 13% per annum nationally and at 15-20% in Auckland and close-by regions, he said.
“Evidence from housing cycles in several advanced economies suggests that the longer this continues, the more likely there will be a severe correction.”
The Reserve Bank is concerned that a severe housing correction would pose real risks for financial system stability and the broader economy.
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