This recognises the changes in house prices over the past year,” [Housing Minister] Megan Woods said. “We are also removing house price caps entirely from the First Home Loan, to provide a greater choice of homes for prospective first home buyers. Now the Government is pumping an extra $148 million into an already inflated housing market”. Encouraging first home buyers into an inflated housing market is a bad idea at the best of times. It is even worse when interest rates are rising sharply and house prices are about to fall off a cliff.

Source: Stuff May 20, 2022 06:03 UTC