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

House price drops are short-lived - Alexander

Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.


Resilience needed in face of change

The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.


Mortgage lending slumps to record low in April

Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.

Site by PHP Developer