IMF warns about high NZ house prices

http://www.stuff.co.nz/business/money/8674854/IMF-warns-about-high-NZ-house-prices

Rising house prices in New Zealand are a growing concern, according to the International Monetary Fund.
 
The IMF repeated concerns that house prices in New Zealand were rising from "already elevated" levels.
 
That could lead to a rise in households borrowing more and spending on the back of rising house values.
 
There was also the potential to "increase the risk of an abrupt price correction", the IMF says in a final country report issued today.
 
The report said the New Zealand economy was growing at a rate "below trend", in part reflecting the effects of the recent drought. The economy was expected to expand 2.5 per cent this year. 
 
An increase in building activity was being offset by government belt-tightening and the headwinds from a high dollar and the recent severe drought. 
 
Inflation pressures remained subdued, the report said.