New Zealand House Prices (calculated based on quoted home values) fell for the tenth consecutive month in April, shrinking at an annual pace of -9.2%. The reading is within a hair of March’s record -9.3% decline, the largest in nearly 4 years. Deepening recession, rising unemployment, and scarce credit access have kept buyers away from big-ticket purchases, sending property values lower. For those that already own a home, the decline amounts to a negative wealth effect, eroding the value of one’s assets to discourage spending and thereby keep a tight lid on economic growth. The Reserve Bank of New Zealand has tried to encourage demand by cutting interest rates to a record-low 2.5% at the last policy meeting and explicitly stated that they “consider it appropriate to provide further policy stimulus to the economy [and] expect to keep [interest rates] at or below the current level through until the latter part of 2010.” The economy is expected to shrink -3.2% through 2009.