Press Release – ASB Bank
House price expectations have reached a new high according to the latest ASB Housing Confidence Survey. In the three months to April, a net 63% of respondents now expect prices to rise over the next 12 months, above the previous peak of net 61% in January 2003. ASB Chief Economist Nick Tuffley says, “House price expectations in Auckland and Christchurch remained elevated. Supply constraints in both cities have resulted in double digit-growth in house prices.”
“Low levels of new listings and strong buyer competition are affecting housing confidence, with an increase in the number of respondents seeing now as a bad time to buy in Auckland or Christchurch. Outside of these areas, housing confidence remains positive but is falling as demand and prices start to increase across the country,” says Mr Tuffley.
Interest rate expectations edged slightly higher over the three months to April, with respondents now broadly split between expecting interest rates to increase in the next 12 months or interest rates to remain unchanged.
Mr Tuffley explains, “Increased RBNZ concern around housing market pressures and increased Canterbury reconstruction activity are likely to be behind the lift in interest rates expectations. Interest rate expectations are strongest in the South Island, where the construction-led recovery is more apparent.”
Fulll ASB NZ Housing Confidence Survey report: