The tap's being turned down on cheap money, which is making markets nervous.

The New Zealand share market fell into correction territory yesterday morning, but recovered during the afternoon to close down 1.27 per cent.

US stocks are also down, with the S&P 500 index falling and the Dow tumbling more than 800 points.

Craigs Investment Partners analyst Mark Lister told Tim Dower that's expected to flow through to New Zealand, especially when it comes to house prices.

“We’ve just got to accept the reality that when the central banks take the punchbowl away, the party doesn’t necessarily stop completely but it certainly might slow down.”

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