Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


ASB Bank Housing Confidence Survey

9 August 2004

ASB Bank Housing Confidence Survey
More balanced housing market gives breathing space for buyers

A slower housing market has prompted a small rebound in the number of people believing now is a good time to buy, but the overall tone remains cautious, according to the latest ASB Bank Housing Confidence survey for the three months to July 2004.

The proportion of people believing it is a good time to buy a house continues to be exceeded by the proportion who believe now is not a good time but the net percentage has lifted from -18% to -7%.

Meanwhile, expectations of house price increases continue to wane. The proportion of those surveyed who expect house prices to continue to rise in the next 12 months is a net 2%, below the net 12% experienced in the three months to April 2004 and the average net proportion of 50% in 2003.

ASB Bank Chief Economist Anthony Byett, believes the slowing of the market is creating opportunities for buyers, but these are tempered by other economic factors.

“The small improvement in perception about timing is a sign that people are under less pressure to buy quickly now - the market is more balanced. For first home buyers this is creating opportunities to enter the market in a more considered fashion. For existing home owners it is a double-edged sword: there are good buying opportunities but it may take longer to sell your existing home – think carefully before entering into unconditional purchase agreements.”

Lower pressure on buyers is evident in the number of days it now takes to sell a dwelling. REINZ figures show that the median number of days nationwide to sell a dwelling has pushed out from 24 days late in 2003 to 31 days in June 2004.

“People are being realistic in not expecting to see a repeat of the large price increases of the last two years. It is also appropriate that they expect higher interest rates.

“Invariably, though, there will be some disappointment amongst sellers, in particular amongst those who become forced sellers. It is a time for realistic expectations and good planning.

“It is encouraging to see economic growth still at good levels and unemployment so low. This is providing the wherewithal to weather rising interest costs. It is also encouraging to see the migration trend remaining in net inflow. This should provide extra demand to soak up some of the rising supply of housing coming on stream. The market may have come off the boil, so to speak, but it has not gone cold.”

People in the South Island continue to be the most wary about the housing market, the proportion of the opinion that it is a good time to buy being a net -16%, below the national average of a net -7%.

Ends - Results and graphs follow.

Note: the reporting of the housing confidence figures has reverted to quarters ending January, April, July, and October.

The Results:


The net result is the difference between those who believe rates it’s a good time to buy and those who do not believe it’s a good time to buy.

The net result is the difference between those who believe prices will increase in the next 12 months and those who do not believe prices will increase in the next 12 months.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news