Wary first-home buyers have recoiled from a cooling housing market, while economic pressures have boosted loan defaults by members of Generation Y.
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Those aged 30 to 40 are retreating from the housing market where many expect price falls, figures compiled by Veda Advantage, a credit-check business, show.
The findings reinforce surveys that show an uncertain economic outlook, as the impact of the worldwide credit crunch – flowing from United States subprime mortgage defaults — widens.
Veda Advantage said home mortgage inquiry volumes fell 27 per cent in the last year to 275,000 from the 350,000 lodged in 2006. Inquiries in January 2008 were down 14% from January 2007.
Meanwhile, financially immature Generation Y members were missing payments on credit-card purchases, including cellphones and iPods, Veda Advantage New Zealand Country Director John Roberts said.