Average household net worth plummets again

A new report shows the net worth of the average New Zealand household fell by $14,500 in the September quarter.

It followed a decline of $17,000 the previous quarter.

Spicers' Household Savings Indicators report says the average household net worth is now just under $356,000, nearly $40,000 down from a year earlier.

Aaron Hing from Spicers says the decline in New Zealanders' assets was driven almost entirely by declines in house prices and lower growth in housing stock.

He said people are reining in their spending and borrowing.

However, there is an up-side.

Spicers CEO Gordon Noble-Campbell said New Zealanders are taking positive steps to manage their debt as they reduce consumption-fuelled borrowing based on rising house prices.

To read the full NZ Herald article click here

Posted: 9 Jan 2009

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