House price rise expectations dwindle

Tuesday 11 May 2004

The number of people expecting house prices to rise over the next 12 months dropped significantly during the last quarter, although the number thinking this is a bad time to buy a house held steady at a net 18%.

By The Landlord

ASB Bank’s latest survey found a net 12% are expecting house prices will rise in the three months ended April, down from an average net 50% through 2003.

A net 58% expect interest rates will rise, up from 56% three months earlier.

ASB Bank chief economist Anthony Byett says the survey results are a reminder of the cyclical nature of housing.

He notes that the Reserve Bank has already started raising interest rates and that net immigration is slowing. The central bank has raised its official cash rate twice from 5% to 5.5% since late January.

"These factors, plus the survey results, suggest that the housing market may be peaking," Byett says

Read More - Opens in a new window
Commenting is closed

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.


NZ proptech start-up scores major investor

Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.


LVR limits slow down investors

LVR speed limits continue to have a "strong effect" on investors, according to CoreLogic, after the latest Reserve Bank data showed a drop in investor borrowing.

Site by PHP Developer