The RBNZ is responding to the recent surge in house prices by reimposing and later tightening LVR restrictions on mortgage borrowers. The impact of LVR restrictions on the housing market has been mixed in the past. And we estimate that the restrictions will reduce the volume of sales by no more than 10%, which would still be consistent with strong price growth. As such, we doubt the restrictions will be enough to cool the red hot housing market.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services