Outlook brighter on house price fall

he Reserve Bank has revised downward a prediction median house prices will fall up to 20 per cent in the recession, though sales volumes appear to be falling.

The institution is now picking a 13 per cent drop through the current economic downturn, despite latest Real Estate Institute figures showing the national median price - which had been picking up in the past few months - had dropped from $340,000 in April to $337,000 last month.

Governor Alan Bollard yesterday cited low mortgage interest rates and higher net immigration as factors that had boosted sales earlier this year.

However, people had since become more circumspect in their spending because financial and housing wealth had been adversely affected lately.

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Posted: 12 Jun 2009

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