Housing prices take big slide

Just two years ago prices were rising about the same amount.

Residents made richer on paper by the superheated market in the past three years are now watching their capital gains evaporate.

Prices fell for the fourth month in a row, and the luxury end of the market is slipping most quickly.

Homeowners with mortgages may face more difficult months, with the prospect of two interest rate rises this year.

The Institute of Economic Research's business survey found strong growth in September, which could prompt the Reserve Bank to increase its rates this month and in December.

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