The Reserve Bank (RBNZ) has changed its view on house prices and now sees a much smaller overall fall than it did in its last detailed set of forecasts in February. It then sees house prices starting to rise (slowly) again in the second half of next year. In the latest MPS the RBNZ said that house prices have fallen 15.3% since their peak in November 2021, measured in monthly terms. "However, there are early signs that house prices may not decrease as much as expected in the February Statement," the RBNZ said. "The fall in house prices to date is expected to flow through to lower household spending over the projection, as aggregate household wealth has fallen substantially."

Source: Stuff May 24, 2023 10:14 UTC