As New Zealanders have enjoyed this strong period of growth, they have invested heavily in housing, with consequent increases in household prices. A central bank might prefer to "look through" a period of asset price inflation, rather than trying to address it with tighter monetary policy. That is an issue that is still argued about overseas.
We did not feel we had the option of sitting back and waiting for the market to "burst", for two reasons - the housing market has been an indicator of very strong activity through the broader economy; in addition, strong house prices have made New Zealanders feel richer and in turn spend very freely, bidding up prices elsewhere.