Prime Minister Jacinda Ardern argued the changes would help more first-home buyers into the market by curbing "rampant speculation" that was helping to fuel booming house prices. At that time every economist and the Treasury had advised the Government that house prices were going to fall. House prices had changed "significantly" in the past few months and the Government had to respond, he said. "We estimate that house prices could settle around 10 per cent lower over the long term," acting chief economist Michael Gordon said. Skyrocketing house prices have defied earlier predictions of a Covid-19-led fall to enter one of the biggest booms in the past two decades.

Source: New Zealand Herald March 23, 2021 17:26 UTC