Fellas, Why pick on NZ? The USA, Spain, UK, Ireland, South Africa, Poland, China (to name a few) all have falling house markets. They also have vastly differing supply/demand fundamentals. For example, the US & Ireland overbuilt and the UK has a tight housing market (always has, 60 million people in the size of Victoria).
So, why are they all tanking at the same time? Because of the one thing those markets had in common, and that was loose credit conditions. We have had loose credit conditions here too. Ergo, house prices will continue falling here too as long as banks remain nervous. And they are nervous.
