The state of the housing market might be worse than you think – but it could also be better, property research firm Corelogic says.
It has released its latest market pulse, which includes several market trends that could indicate activity falling faster than some people appreciate.
Chief property economist Kelvin Davidson said a 20% fall in house prices in real terms, as predicted by Westpac and ASB, was a reasonable expectation.
He said, with house prices already down 5% or 6% and inflation about 7%, they had already come off 11% or 12% in real terms.
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Davidson says the amount of lending being done by the banks might obscure a bigger drop in activity.
There was a total of $7.2 billion in home lending in…