Home buyers are being warned that while the Reserve Bank is considering measures to cool the housing markets in Auckland and Christchurch, its aim is not to reduce prices.
The Reserve Bank is considering restricting loans for a high percentage of a home's value. It says the market is overheated, which poses a risk to financial stability.
But Infometrics economist Matt Nolan said there is confusion between the ideas about financial stability and those about house prices.
He said the Reserve Bank is doing little to clarify the situation.
Mr Nolan said he would like to see the bank focus on the stability it is trying to achieve.
He said politicians also add to the confusion, as they are happy to ship-out blame for house prices.