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.