Hovering pessimism in residential housing market

Tuesday 9 November 2004

For the second quarter in a row, the ASB Bank Housing Confidence Survey shows continuing pessimism about buying new homes -- and chief economist Anthony Byett suggests houses may drop by 5 per cent over the next 6-12 months.

By The Landlord

The survey showed that a net negative 7 per cent (-7) thought the October quarter had been a good time to buy, a result that was unchanged from the July quarter, and that confidence is lower in the South Island.

That net loss indicates that more people said it was not a good time to buy than said it was a good time to buy, which means there are still optimistic would-be buyers about -- but they're getting thinner on the ground.

South Islanders continue to be the most wary about the housing market, the proportion of the opinion that it is a good time to buy being a net negative 21 per cent, below the national average of a net negative 7 per cent.

The survey also showed a growing number of people expected interest rates to rise -- as well they might have, since it was taken before the universally anticipated 28 October Reserve Bank hike in the official cash rate.

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.


Industrial holdings leave Provincia in strong position

Tales of strife and problems abound in the commercial property world these days, but the impact of the Covid-19 pandemic has not been as devastating for all commercial players.


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