In New Zealand, new information released about the residential property prices shows an increase in residential property prices, but one that is smaller than other months.
In December, the yearly property value rose 10 per cent, which is down from the yearly value in November at 11.4 per cent and an overall high in August of 13 per cent.
QV representative Blue Hancock had this to say, "There is nothing in our statistics to suggest that this trend will not continue into 2008, with the spring marketing having failed to provide the usual resurgence."
The residential sale price at the national average fell from $400,000 in October to $393,000 in November to $388,000 in December.
This news comes with the worldwide property market struggling. It also has fuelled talk amongst economists in terms of what the Reserve Bank will do and what lenders will do with a rise that is slower than desired.
Westpac, a mortgage lender, raised its two year fixed rate mortgage up 0.2 per cent from 9.4 per cent to 9.6 per cent over the weekend. Additionally, other lending banks have done the same type of thing. These rates reflect an overall growth in the last two years where they were about 8 per cent at that time.
In terms of the Reserve Bank, most economists believe the bank will hold cash rate the same at 8.25 per cent throughout most of this year, or even through the early part of next. At that time, rates should be cut.