Slowdown - what slowdown?

Darren Gibbs, senior economist at Deutsche Bank, also attribute’s the declines in activity in April to the "Easter" factor – it fell partly in March last year but was all in April this year.

"The housing market remains a significant source of strength for the New Zealand economy at a time when a number of external factors are acting to push growth below trend," Gibbs says.

"Further reductions in interest rates and robust migrant inflows are expected to ensure the housing market undergoes only a modest slowdown in activity over the coming year," he says.

He is predicting the Reserve Bank will cut the Official Cash Rate (OCR) by 50 basis points to 5% in June and by a further 25 points in July.

Read More - Opens in a new window