House Prices

House price expectations up

More than half of people expect house prices to continue to rise over the next year, a new survey shows.

Monday, August 12th 2013

The ASB Housing Confidence Survey reports that a net 56% of respondents expected prices to rise over the next 12 months.

ASB chief economist Nick Tuffley said: “Fundamentals, such as income and population growth and relatively low interest rates, will continue to support housing demand over the coming year.”

House price expectations edged slightly lower in the three months to July, but that seemed to be influenced by a change in survey methodology. he said, “Net price expectations remain highest in Canterbury and Auckland, where the housing market remains tightest and house prices are rising rapidly.”

But the tight housing market meant fewer respondents thought now was a good time to buy. A net 0% of respondents believe now is a good time to buy, compared to a net 8% in the three months to April.

Tuffley said the results reflected the current housing landscape, “While housing demand has increased, new supply has remained at historically-low levels. With more potential buyers chasing the few properties listed, competition has bid up prices and reduced negotiating power.”

Interest rate expectations lifted in the three months to July, with net 39% of respondents expecting interest rates to rise over the next 12 months.

“This is consistent with our view the RBNZ will start to lift the OCR from March 2014. Some fixed-term mortgage rates have started to increase to reflect the likelihood of a higher floating rate in the future,” Tuffley said.

Comments

No comments yet

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.