| A report warning of a sharp downturn in house prices shows the Government is focused on the right area, Prime Minister John Key says. The International Monetary Fund has highlighted a strengthening housing market as one of the risks facing the New Zealand economy over the next 12 months. Rising price expectations could fuel another housing bubble, it says.
In its annual report card, the IMF said household credit growth, housing market turnover and house-price inflation had all recently picked up, particularly in Auckland where supply bottlenecks persisted and prices remained elevated "by most measures of affordability"...............................................Full Article: Source |