Thursday, April 3, 2008

Homes could become affordable again

"Many potential home owners, long squeezed out of the market [by the high prices], stand to be big benefactors," the Bank of New Zealand said today, after estimating that house prices are curently overvalued by about 30 percent.

"We believe house prices risk falling by more than the 10 percent we already presume for this year," the BNZ said in a report. The bank stopped short, however, of saying house prices will fall by 30 percent.

All this is good news for our daughter, who has a respectable sum saved for her first home.

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