House sales plummet by record amount

House sales volumes fell by a record amount in the first half of 2008, a report by economic consultants Infometrics shows.

Findings released today show property sales volumes slumped 44.3 per cent compared to the same period in 2007, exceeding the previous record decline of 39.4 per cent set in the second half of 1974.

The data is in a report prepared for mortgage insurer QBE Lenders' Mortgage Insurance.

A downward trend in median house prices has developed since 2007 with the Christchurch, Hawke's Bay and Taranaki/Manawatu/Wanganui regions experiencing the worst home value declines over the year to June 2008.

Nationally, the average price over the three months to August 2008 was 3.1 per cent lower than a year earlier.

Infometrics senior economist Gareth Kiernan said the annual price decline was the first across the country since 2001.

Looking forward, annual growth in the median house price could dip as low as minus 10 per cent in early 2009 and nationally, prices were forecast to fall 5.8 per cent by June 2009, he said.

To read the full NZ Herald article click here

Posted: 18 Nov 2008

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