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

 

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Inflation: CPI Increases 0.3 Percent In June Quarter

The consumers price index (CPI) rose 0.3 percent in the June 2014 quarter, Statistics New Zealand said today. This follows rises of 0.3 percent the March quarter and 0.1 percent in the December 2013 quarter. More>>

ALSO:

Half Empty: Dairy Product Prices Drop To Lowest Since December 2012

Dairy product prices fell to the lowest level since December 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and anhydrous milk fat. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news