N.Z. House Prices Fall for First Time in Six Months (Update2)
|
Jan. 18 (Bloomberg) -- New Zealand house prices fell for the first time in six months in December as the number of properties sold declined for a third month.
Prices fell 0.9 percent from November, the Auckland-based Real Estate Institute of New Zealand Inc. said today in an e- mailed statement, citing an index. The number of properties sold dropped to 4,957 from 6,056 in November.
New Zealand lenders have been raising interest rates on fixed-term home loans as their funding costs increase, curbing demand for property. Falling house prices add to signs the economy’s recovery from recession may be only gradual in the first half of the year, making it unlikely the Reserve Bank will raise interest rates anytime soon.
“The market has started to lose momentum,” said Nick Tuffley, chief economist at ASB Bank Ltd. in Auckland. The Reserve Bank “won’t be uncomfortable with the trends that they are seeing.”
New Zealand’s dollar fell to 73.39 U.S. cents at 10:55 a.m. in Wellington from 73.64 cents immediately before the report was released.
