Home-building approvals dip to 17-year low

Approvals for new dwellings sank 4.6% last month, seasonally adjusted, continuing a downward trend that began in June 2007 to the lowest level since the series began, according to Statistics New Zealand.

Excluding apartments, the number of consents slipped 1.3% last month. Dwelling consents are down a quarter from the same month in 2008.

March home sales jumped 31% to 6,694 from the previous month, with the median price climbing 1.5% to $335,000 over the same period, according to the Real Estate Institute of New Zealand.

Cheaper lending has offset the impact of the recession as the Reserve Bank of New Zealand slashed the official cash rate to 2.5% today and indicated low rates until late next year.