More signs housing market slowing

Tuesday 9 November 2004

ASB Bank’s latest survey of housing confidence suggests that while the housing market is slowing, steep declines in house prices are unlikely.

By The Landlord

"As with previous cycles in the New Zealand housing market, any declines look likely to be modest on average, especially against an average 52% gain in house prices over the last three years," says ASB chief economist Anthony Byett.

"Unlike during other cycles, the economy continues to grow and no recession is expected."

The survey found a net 7% of the 600 people surveyed think it isn’t a good time to buy a house and that a net 2% think house prices will fall.

However, Byett notes that the most common response (from 41%) to the latter question was that house prices would stay the same.

The responses to both these questions are unchanged from three months ago, but slightly more, 75% expect interest rates to rise further, up from 68% three months ago.

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