Clark plays down property fears

Well, she has to say something.

The Government is not expecting a property crash, Prime Minister Helen Clark says.

Recent figures from the Real Estate Institute (REINZ) suggest the market is now in a downturn with prices dropping slightly in some areas and houses taking longer to sell.

Some housing market commentators have suggested the worst is yet to come, with some picking a fall as big as 30 percent over three years.

But Miss Clark said that did not line up with the official advice she was receiving from Treasury.

“I haven’t seen predictions anything like that,” she told reporters.

“In fact the advice we had … was that a fall of anything like that magnitude was very very unlikely and that the affordability issue was unlikely to be impacted very much at all by what was likely to happen to house prices.”

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