Auckland's average house price has officially cracked the $1 million mark, with politicians demanding a government response to the "scandalous" milestone. However, Prime Minister John Key says the unwelcome figure is simply the sign of a market moving up and down - although he has conceded it would be fine if prices "eased back a wee bit".

In a further effort to slow the mad housing market, the Reserve Bank is going to put limits on how much investors can borrow and has also re-tightened limits on how much banks can lend to people with house deposits under 20 per cent.

Sky-rocketing Auckland house prices are showing signs of slowing down and any talk about hitting a $1 million average is "over inflating" where prices are heading. Barfoot & Thompson figures show the average sale price reached $906,560 in August, up 4.5 per cent compared to July. However, this was an increase of only 2.6 per cent on the average price over the previous three months.

"Mission Bay's ideal location and mix of city and coastal lifestyles make it a very desirable and high-end suburb. We've seen this demand push prices up across the board, and have also been involved in a greater number of high-value, multi-million dollar property sales," said Andy MacDonald, Barfoot & Thompson Mission Bay branch manager.

The Reserve Bank's head of economics has not ruled out the official cash rate (OCR) falling to zero "but I don't think we're going to get there". In an interview with Radio New Zealand, assistant governor Dr John McDermott, the bank's head of economics was asked what the bank would do to stoke inflation.

More than 60 construction-related Christchurch companies have been liquidated this year, owing creditors an estimated $40 million. Analysis of hundreds of insolvency records found about 160 companies in the building industry registered in Canterbury have gone bust since January 2015.

Many a harassed city-dweller dreams of escaping the rat race to a better, more relaxed life in a beachside town. Some, like businessman Gary Alway do more than dream. Alway cashed up his villa in the Auckland suburb of Mount Albert and headed to Waihi Beach, just north of Tauranga. He'd been in Auckland 20 years, and he'd had enough.

Former homeowners will find the sale of their home is just the main course. Bankruptcy will be for dessert, followed by the "cheese and biscuits" of seeing their KiwiSaver drained. Even if bankruptcy doesn't happen, the threat of it will mean people will willingly agree to the next best thing- a Summary Instalment Order.

The Reserve Bank has cut the official cash rate (OCR) to a new all time low of 2.0 per cent, but borrowers are set to see little saving. Governor Graeme Wheeler lowered the benchmark rate by 0.25 percentage points, saying the New Zealand dollar needed to come down.

When the bank lifted the benchmark rate the price of mortgages went up, when it cut, they went down. It has been the same with the interest on deposits. In theory, a cut in the official cash rate (OCR) means it is cheaper for the banks to borrow money, and this would usually be followed practically immediately in lower floating mortgage rates, and a cut in interest paid to depositors.