House prices stabilised earlier than RBNZ expected

“While the outlook for house prices is highly uncertain, they are now assumed to have reached a trough earlier than was assumed in the May statement,” the statement said.

But house prices are still significantly below their previous peak, substantially decreasing household wealth.

“The earlier-than-expected stabilisation in house prices is assumed to support household consumption over the next three years, somewhat offsetting the dampening impact of overall lower house prices.”

But house prices are still significantly below their previous peak, substantially decreasing household wealth.