The Prime Minister says if things calm down in our housing market

Reserve Bank Governor Adrian Orr isn't ruling out Kiwi house prices falling as they have in Sydney and Melbourne.

Jacinda Ardern says the Governor isn't characterising that as a decline in value, but rather a cooling in the rate of increase.

She says there has been considerable alarm at what's been happening - particularly in Auckland, at the rate at which the market is moving well beyond people's incomes.

Ardern says we're seeing a little cooling - and that will be welcomed by many.