What do Auckland’s housing market and the Dow Jones have in common?

Higher inflation, higher interest rates, exposing overblown asset prices: it’s not only international share markets that could be feeling the jitters emanating from the US over the last week. The 7.9% drop in the Dow Jones index between January 30 and February 6 came amid fears that higher interest rates could lead to a correction in equity prices. There have been similar fears that property prices in New Zealand have been “artificially” boosted by very low interest rates, which won’t last forever.