As America is collapsing under the mortgage meltdown, the sub prime crisis and the costs of two illegal wars, New Zealand follows suit. 15 Finance institutions disappeared overnight due to the sub prime crisis which is not just an American phenomena but a world wide hidden disaster finally crawling out of the wood works, houseprices are tumbling and a 10 year artificial housing boom enabled by irresponsible banking practices is coming to it’s end with the poor and the middle class paying the price. Perhaps it is time to ask John Key how he made his money. While working for Merrill Lynch he was after all head of the European Bonds and Derivatives department.
January turned into a “buyers market” for houses in January with extremely low sales volumes, down to a seven-year low, and a sharp increase in days to sell properties, according top figures just out from the Real Estate Institute.
The national median price fell from $345,000 in December to $340,000 in January. The median is now down $12,000 from the recent peak of $352,000 in November 2007.
January is traditionally weak because people are away on summer holidays.
But sales volumes were unusually low at 5,186 which was the lowest volume since January 2001, compared with 7,566 in January 2007 and 5,597 in December 2007.
Days to sell ballooned out by 13 days to 49 days nationally, the highest since the January 2002 figure of 54 days.