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

 

House price expectations remain high

Media Release
EMARGOED UNTIL 5am MONDAY 12 AUGUST 2013

House price expectations remain high

•          House price expectations remain high over the three months to July.
•          Housing confidence declines again as fewer respondents see now as a good time to buy.
•          Interest rate expectations edge higher, with OCR increases likely from March 2014.

House price expectations remain high according to the latest ASB Housing Confidence Survey. In the three months to July, a net 56% of respondents said they expect prices to rise over the next 12 months.

ASB Chief Economist Nick Tuffley says, “Fundamentals, such as income and population growth and relatively low interest rates, will continue to support housing demand over the coming year.” 

While house price expectations edged slightly lower in the three months to July, this appears to be influenced by a change in survey methodology. Mr Tuffley says, “Net price expectations remain highest in Canterbury and Auckland, where the housing market remains tightest and house prices are rising rapidly.”

The tight housing market has resulted in fewer respondents viewing now as a good time to buy. A net 0% of respondents believe now is a good time to buy, compared to a net 8% in the three months to April. 

Mr Tuffley says the results reflect the current housing landscape, “While housing demand has increased, new supply has remained at historically-low levels. With more potential buyers chasing the few properties listed, competition has bid up prices and reduced negotiating power.”

Interest rate expectations lifted in the three months to July, with net 39% of respondents expecting interest rates to rise over the next 12 months. 

“This is consistent with our view the RBNZ will start to lift the Official Cash Rate (OCR) from March 2014. Some fixed-term mortgage rates have started to increase to reflect the likelihood of a higher floating rate in the future,” concludes Mr Tuffley.

The full ASB NZ Housing Confidence Survey report:

http://img.scoop.co.nz/media/pdfs/1308/Embargoed_ASB_Housing_Confidence_Survey_12_August_2013.pdf  

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Commerce Commission: Appeals Record $2.25m Fine In Vodafone FibreX Case

The Commerce Commission has filed an appeal in the High Court against a record $2.25 million fine imposed on Vodafone NZ Limited (Vodafone) for its offending under the Fair Trading Act during its FibreX advertising campaign. While the sentence imposed in the Auckland District Court on April 14 was the largest-ever fine under the Fair Trading Act, the Commission will argue that it is manifestly inadequate... More>>



All District Health Boards: Historic Pay Equity Settlement

An historic agreement has been ratified that addresses a long-standing undervaluation of a workforce that is critical to the smooth running of our hospitals and the delivery of healthcare... More>>


MPI: Dry Autumn In Waikato And South Auckland Leads To Drought Classification Drought conditions affecting the primary sector in the Waikato and South Auckland were today classified as a medium-scale adverse event, enabling a package of support for farmers and growers... More>>


Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>


DoC: Smeagol The ‘Gravel Maggot’ Leaves Its Rare Mark On The Remote West Coast
An extremely rare species of sea slug or ‘gravel maggot’ has been detected for the first time on a remote beach in South Westland... More>>



Immigration: Annual Net Migration Loss Of 7,300

The provisional net loss of 7,300 people in the year ended March 2022 was the lowest net migration for a March year since 2012, Stats NZ said today... More>>