Housing market boom won't last long: Westpac

In their latest weekly analysis, the bank's economists point to a lack of saving by Kiwis reducing the level of available funding for home lending. 

"While the housing market is on a tear for now, we don’t expect this will last long. New Zealanders are keen to borrow, but less focused on saving," the economists said.

The lack of saving has "crimped the amount of funds coming back into the banking system", and has "resulted in upwards pressure on mortgage rates independent of a change in the official cash rate", the bank said. 

A rise in mortgage rates and falling migration figures are likely to keep a lid on the housing market through the year, Westpac economists, including Dominick Stephens, said.