Reserve Bank Governor says he is not expecting a take-off in house prices in the near future.
Alan Bollard told a select committee at Parliament on Wednesday houses remain overvalued and believes New Zealanders are reluctant to push them up much further.
Dr Bollard told MPs that investment in the market will pick up, including in new homes, but does not expect that to lead to a surge in prices.
He described houses as very fully priced - even possibly overpriced.
While prices for expensive homes, particularly in Auckland, have been making headlines, Dr Bollard does not think the rest of the market is rising as quickly.
He says any pick-up in prices is unlikely to lead to as big a rise in debt as during the mid-2000s, because buyers are finding larger deposits.