Shamubeel Eaqub: Property is not a one-way betLiz McDonald Signs are that New Zealand's super heated property market has been cooling. CHRIS MCKEEN/STUFF Banking and finance loaned aggressively through the upturn in the housing market, says Shamubeel Eaqub. So even in New Zealand, we have evidence that house prices are not a one-way bet – they can fall in many areas, and sometimes severely. In each instance, prior to 2007 house prices rose sharply relative to incomes, and lots of houses were built and traded; when the momentum ran out or an external shock hit, house prices fell sharply. A major fall in house prices can create chaos across an economy, as we saw in the global financial crisis.

Source: Stuff August 05, 2017 16:52 UTC