Unlike Brazil, the warning signs are out in New Zealand over rising home prices. Déjà vu? Back in the early 2000s, easy credit fueled a housing bubble that eventually burst, causing the economy to dip into recession.
Ultra-low borrowing costs have helped New Zealand recover, but now they're also helping push home prices higher. Prices in Auckland have risen by 17%, while they're up 8% in Christchurch so far this year.
That's bubble territory, at least according to New Zealand's government. In October, officials tightened lending standards, giving banks less leeway in approving mortgages for buyers who can make only a small down payment.