Public split on whether it is a good time to buy

Of the 600 people surveyed between February and April, 24 per cent considered it a good time to buy and 25 per cent thought it was not.

The net 1 per cent negative compares with a net 5 per cent positive figure three months earlier.

Reflecting the rebound in the market since the last quarter of 2004, a net 28 per cent expect house prices to increase, up from 9 per cent three months earlier.

And a net 62 per cent expect interest rates to rise in the next 12 months, up from 51 per cent.

The survey has a margin of error of 4 per cent.

ASB chief economist Anthony Byett said that since Easter lending activity had slowed.

"But equally some of the fixed rates are creeping down as well. So it could easily rebound."

Up to the end of March, the most recent official figures available, demand for home loans showed no sign of abating. That is despite the debt burden being at record levels.

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