Mega-trend 2: House prices plunge

This is the second in the Mega-trend series by Bernard Hickey, reviewing the major events of 2008.  From their peak in November 2007, New Zealand house prices have started to fall, ending the year down about -5% from thise highs. Although the start of the price-reversal trend has been modest, the volume of sales has collapsed, with record low numbers of houses sold in the final months of 2008. Bernard Hickey reviews these major trends, and suggests what may be in store in the coming year.