RBNZ's Bascand says NZ house price drop could be worse than expected

Reserve Bank Deputy Governor Geoff Bascand

• expected nine per cent fall in house prices could "potentially" be worse
• "We find it hard to believe - with lower immigration, prices where they were so high in the first place and with households suffering from unemployment - we'll get the same buoyancy in the housing market,"
• "It would need a much bigger fall in house prices to leave households really stretched. Probably the bigger problem is, can they service the loans? Have they got the income? That's where banks have to help them out."
• encouraging that domestic spending was starting again in New Zealand but he would not "crow victory yet"