Figures released today show the extent to which the brakes have been applied to the housing market in New Zealand.
The research comes from credit monitoring company Veda Advantage.
Their data shows a 27 per cent decrease in housing loan applications last year, compared to 2006.
Andthe trend is continuing this year.
Data from January this year points to a 14 per cent decrease on 2007, firm evidence that the economic slowdown is biting hard on the property market.
Figures also showed the largest decline in mortgage applications was from the 30-40 age group with a drop of 26 per cent.
"27 per cent is a sharp year-on-year drop, and given the cyclical trends we've seen from 2000 through to 2008, it's expected we'll see a similar drop off in 2008, one which is likely to be exacerbated by the predicted slowdown of the economy", said Veda Advantage director John Roberts.
