Price is simply a function of what someone is willing to pay for goods and services. It is subjective and hardly ever a good indicator of true value. True value is a function of strong fundamentals. In times of a crisis, it is very natural for decision making to be driven by price instead of fundamentals because of the amount of emotions involved in the midst of uncertainty.
New Zealand GDP reported last night came in at its worst in 29 years, down 1.6% in the first quarter. In the middle of this supposed recovery attempt, it is imperative for everyone to understand how to read the market during a crisis. Housing market data is notoriously slow in being reported and hence, the upcoming decline will have a long tail driven by delayed data and inaccurate reporting.