RBNZ Spencer - Very unlikely housing market will tank

Reserve Bank Governor Grant Spencer, while speaking to a Parliamentary committee, took note of the slowdown in the housing construction activity and said the odds of a housing market crash are low. the Reserve Bank announced a slight relaxation of the loan to value ratio (LVR) restrictions. Banks would be able to lift the amount of lending they can do to borrowers with deposits of less than 20 percent from January 1.

Key quotes

• Not enough houses are being built
• Very unlikely housing market will tank
• Still a shortage of housing for owner occupiers
• Lon to value ratio (LVR) changes won't have discernible impact on prices