House price, investment crunch: Households $88.9 billion poorer, Stats…

New Zealand households have become poorer, overall, for two quarters in a row.

Falling house prices and a weaker share market have reduced New Zealand households’ net worth, Stats NZ data shows.

The net worth of households fell $88.9 billion, or 3.7%, in the June quarter.

It is more than twice the $40.2b fall in the March quarter. The two quarters of declining wealth come after ten consecutive quarters where household wealth increased.

Net worth is the value of all assets owned by households, like houses and other investments, minus the value of all their liabilities, such as home loans.

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