Hot on the heels of a Government initiative to cool the housing market, BNZ’s chief economist has backed calls to make house prices more affordable. 1 NEWS The Government has told the Reserve Bank to take house prices into account when considering monetary policy. It took a long time to increase incomes, “so the question becomes do house prices need to fall? I think it’s a legitimate question and my personal view is, a fall in house prices would be beneficial for affordability”. ‘’I’m all in favour of LVRs and ... of the Reserve Bank investigating other options like house prices to income ratios.

Source: Stuff February 25, 2021 21:23 UTC