NZ house sales continue to fall

08/05/2008 20:18:39

House sales in New Zealand are continuing to slide.

New figures show that in the first quarter of this year housing sales were down 40 per cent, compared with the same time last year.

The figures released by PMI Mortgage Insurance, also show that on a quarter-by-quarter basis, price appreciation now looks to be falling at the fastest rate in 10 years.

Meanwhile, the New Zealand Reserve Bank has moved to ensure the financial sector has enough cash on hand to function properly, should the credit crunch worsen.

To improve liquidity, the Reserve has extended the range of securities it will accept as collateral from banks seeking loans.

The Reserve has also advised banks to lengthen the maturity structure of their debt, even if it costs slightly more to do so.

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