• House price expectations remain elevated, with a net 49% of respondents expecting house prices will increase.
• The vast majority expect higher interest rates over the next twelve months.
• Sentiment about buying a house has deteriorated, with a net 11% of respondents seeing now as a bad time to buy.
House price expectations remain elevated in the latest ASB Housing Confidence Survey. A net 49% of respondents expect
house prices will increase. That’s very similar to the previous two quarters’ surveys, but a slight decline from early last year
when a net 63% expected house prices to increase. The housing market remains tight, but the easing in price expectations is
consistent with the moderation in activity observed since late 2013.
Sentiment about buying a house has dipped again, with a net 11% of respondents seeing now as a bad time to buy a house.
That’s the worst sentiment since October 2007. The combination of rising mortgages, expensive housing and lending
restrictions will all be playing a part in the decline in sentiment over recent surveys, including the last quarter’s results.
Interest rate expectations are little changed over the past quarter. The vast majority (a net 69%) expect higher interest rates
over the next twelve months (was 70% in the April quarter). That is consistent with the increases in the OCR and mortgage
rates over the quarter. The influence of RBNZ’s pause signal in late July will be something to monitor in the next survey.
Read the full report here ~https://reports.asb.co.nz/index.html