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

 


House price expectations nearing 2003 peak levels



Media Release

ASB NZ Housing Confidence Survey

EMARGOED UNTIL 0500 MONDAY 25 FEBRUARY

House price expectations nearing 2003 peak levels


House price expectations just a fraction below previous peak levels.
Housing confidence declines as fewer see now as a good time to buy.
Interest rate expectations remain steady.


House price expectations are approaching record levels according to the latest ASB Housing Confidence Survey.

In the three months to January, a net 59% of respondents now expect prices to rise over the next 12 months, just a fraction below the January 2003 peak of 61%. Price expectations increased the most in Auckland and remained the highest in Christchurch and Auckland.

However, the overall ASB Housing Confidence Index declined to 13% from 23%. While this decline in confidence was seen across the country, confidence is the lowest in Christchurch and Auckland. In these regions, net confidence has now turned negative, indicating respondents feel that it is a bad time to buy.

ASB Chief Economist Nick Tuffley says the decline in confidence reflects the shortage of housing available for sale.

“Listings remain low and have not kept up with the modest increase in demand,” Mr Tuffley says. “Housing inventory levels have fallen sharply and the market is tilted in favour of sellers. Supply shortages have been most acute in Christchurch and Auckland. As a result, price increases are strongest in these areas.”

Interest rate expectations remained stable in the latest survey, with only 32% of expecting interest rates to rise over the next 12 months.

“This is consistent with our view on the OCR and floating mortgage rate,” says Mr Tuffley. However, Mr Tuffley warns borrowers that change may be on the horizon. “Fixed mortgage rates are likely to increase over the coming year as the market gradually moves to anticipate cash rate increases from the RBNZ.”

ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news