Brash said Little was "obviously terrified" of saying house prices needed to fall. But he sympathised with Key's view that signalling further restrictions could increase the level of speculation in the market.He said the Reserve Bank had no statutory responsibility for Auckland house prices or any house prices at all. Dr Don Brash says house prices in Auckland have to fall if they are to get back to affordable levels but politicians of both the left and right are terrified of saying so. Brash, a former Reserve Bank Governor and a former National Party leader, said the house prices in Auckland were a huge problem, both economically and socially. Brash said it was impossible to go from the current situation in which Auckland median house prices were 10 times the median household income to a more affordable ratio of three or five without a fall in prices.

Source: New Zealand Herald July 11, 2016 08:19 UTC