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


NZ households rein in house-price expectations

NZ households rein in house-price expectations in latest RBNZ survey

By Paul McBeth

Nov. 17 (BusinessDesk) - New Zealand households have dialled back their expectations on whether property prices will rise, although they still anticipate higher consumer prices, according to the Reserve Bank's latest survey.

A net 7.3 percent of the 750 households surveyed by UMR Research expect house prices to rise, down from 40 percent in the September quarter survey, and 60 percent a year earlier. House prices are seen edging up 0.1 percent in the next year, less than the 2.8 percent annual pace seen in the previous survey.

Those are the lowest levels seen in the RBNZ-commissioned survey since it started asking about house prices in mid-2011.

The survey's release comes after Real Estate Institute figures this week showed October housing turnover picked up from the doldrums in September, declining at a slower pace and showing a small increase in the house price index.

Households were also wary about consumer prices with a net 41 percent expecting inflation to accelerate a year from now, up from a net 38 percent in the September survey. Current inflation was seen at 2 percent according to the survey's median, compared to 1.9 percent official rate, while one-year ahead expectations increased to 3 percent from 2.5 percent.

The five-year horizon was flat at 3 percent.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

QV: Tax Changes Yet To Dampen Red-Hot Housing Market

Just over a month has passed since the Government announced measures aimed at dampening the rampant growth of the property market, and yet the latest QV House Price Index data shows the market hit a new high in April. The average value increased 8.9% nationally ... More>>

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>