Building consents fall in April to second lowest level in 26 years (update 1, corrected)

Dwelling consents fell in April, indicating further pressure to come for New Zealand's construction industry and the economy generally. (Update 1 includes seasonal adjustment figure.) There were 1,009 dwelling consents issued over the month, down 8% from March, and down 57% from April 2008, figures from Statistics New Zealand (Stats NZ) show. This was the second lowest figure since records began in 1992 January 1983 (when there were 871 issued), with the record low since the series began in 1965 being 812 in January this year. The dire state of the house building sector keeps the pressure on the Reserve Bank to cut the Official Cash Rate again on June 11, although banks have stopped passing these cuts on to both savers and borrowers. Some see the low level of consents as a sign housing supply will tighten, helping to soften or reverse any fall in house prices. The value of dwelling consents issued in April was NZ$260 million, down 51% from a year ago. The value of consents for all residential buildings (including alterations, additions and outbuildings) was down 45% from April 2008. "The trend (for the number of new housing units authorised, excluding apartment units) is currently at its lowest level since this series began in January 1992, and has fallen by more than half since June 2007, although there are signs that the decline is easing," Government statistician Geoff Bascand said. There were 199 building consents issued for apartments in April, and 810 consents for other dwellings. Seasonally adjusted, dwelling consents rose 11% from March, but were down 57% from April 2008. Excluding apartments, dwelling consents were up 4.5% from March, but still had a downward trend, down 0.5%.