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Adrian Orr says house prices should be falling

Jenny Ruth
Thu, 19 Aug 2021

Reserve Bank governor Adrian Orr said NZ's economy is in a good position. (Image: Getty)
Jenny Ruth
Thu, 19 Aug 2021
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House prices should be falling, given current supply and demand signals, Reserve Bank governor Adrian Orr said.Yesterday's monetary policy statement (MPS) showed housing supply is now running ahead of demand."If supply is rising and demand is flat, then prices fall," Orr told parliament's finance and expenditure committee (FEC).But the MPS said underlying demand for housing due to population growth has declined significantly since the covid-19 pandemic began last year while building consents are at record levels."Building...

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