Auckland's largest real estate agency says house prices in the city are being underpinned by low numbers of properties for sale, so proposed limits on bank mortgage lending would take time to have an impact.
The average Auckland sale price in the city in May was $644,737, a rise of less than $2000 compared to the month before. However, that is still 10.7% ahead of the average price in May last year.
Barfoot and Thompson says new listings in May were at a four month low of 1315, and 1284 of them sold.
The agency says house prices are steady and the upward price momentum that started last October has stalled.
But managing director Peter Thompson says most of what the agency gets on its books it sells.
The Reserve Bank is proposed to limit banks' mortage lending to people with small deposits, to take the heat out of the housing market.
Mr Thompson believes this would take six to 12 months to have an effect.
Bank of New Zealand head of research Stephen Toplis says demand for houses will be robust.
He says more people want houses than there are houses for sale, which inevitably puts upward pressure on prices.
Mr Toplis says the Reserve Bank's policy is aimed at protecting the banking system in the event, in this case, of a significant house price correction, and thinks the central bank will be looking to introduce it as soon as possible.
He says the Reserve Bank has already stated that the housing market in New Zealand is overvalued and that it will become even more overvalued and the aim is to protect the banking system against that.
