Brian Gaynor, executive director at Milford Asset Management,has told interest.co.nzthe housing market is "a major medium-term concern" because there's no question in his mind that at some it will come back down, though he doesn't know when. Advertisement "And it will come back 10, 15, 20 or even 25% and that will have a really devastating impact upon the New Zealand economy because of the high level of debt," Mr Gaynor told the interest rates website in an interview. "Will it be this year? Probably not, but it could be. Will it be next year? I'm not sure. It could be two or three years time but it will happen at some stage," he said. "Asset prices don't keep on going up year after year although most New Zealand investors believe that they do," Mr Gaynor added. Mr Gaynor predicts the strong finish to 2014 for the housing market, driven by Auckland, will continue into 2015 because increased housing supply doesn't look like it's coming this year. "So I can see housing going even higher," he said. But the "massive momentum to the property market" won't last forever, he predicted. Asked what could trigger a significant fall in house prices, Gaynor said supply and the Australian economy were key factors.
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