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While mortgage interest rates may be coming down soon, house prices are also heading south, says Reserve Bank Governor Alan Bollard.
"From their peak in 2007, nominal house prices are assumed to fall by about 13 per cent," he said. This compared with a nominal fall of 16 per cent in US house prices.
This fall in house prices rises to 22 percent when inflation is taken into account. After the first oil shock in the 1970s real house prices fell 38 percent, the bank noted.
What is to blame for the downward trend in house prices? Here is the latest selection of Your Views:
