You may be interested in the housing market in New Zealand. Please find herewith a report compiled by the National Bank providing you with a little bit of an insight;

The housing market continues to be very weak. Real Estate Institute figures for June 2008 showed sales volumes have almost halved from a year ago.

The dramatic fall in sales indicates that there is a big gap between the price expectations of sellers and those of home buyers. Sellers are proving reluctant to lower prices in spite of changed market conditions, with the result that many properties are remaining unsold. Another outcome in some areas is the trend towards advertising a reduced price for unconditional offers.

The Reserve Bank's recent announcement stated that it was likely to be in a position to reduce the Official Cash Rate (OCR) later this year. The OCR is one of many indicators that affect short term interest rates such as home loan floating rates, and one and two year fixed lendingrates. However, the impact on home lending rates may be less straightforward. The threat of inflation remains high with food and oil prices continuing to rise, which may mean rate cuts will be staggered. In addition, ongoing concerns over the global credit environment means borrowing from offshore remains more expensive.

Economists continue to expect the Reserve Bank to begin cutting the OCR from September, which is likely to see lower mortgage interest rates. This will help provide some much needed support to the housing market and see housing affordability improve.