Fewer people are expecting house prices to keep rising especially in Auckland, according to ASB's latest Housing Confidence Survey.
It found 56% of the respondents throughout the country expect house prices to increase in the next 12 months, down from 64% in October.
But only 10% expect prices to fall, although that was up from 7% in October.
That means a net 46% of respondents expect house prices to keep rising, down from a net 58% in October.
In Auckland the drop was even more pronounced with a net 36% of respondents expecting house prices to rise in the next 12 months, down from a net 51% in October.
In the rest of the North Island (excluding Auckland), the number of people expecting prices to keep rising dropped from a net 64% to a net 52% over the same period.
"This survey corresponded with a significant drop in housing market activity following the RBNZ's latest investor focussed loan-to-value ratio (LVR) restrictions," ASB said in its report on the survey results.
"Not only has housing market data shown a fall in sales activity recently, it has also suggested house price growth has slowed in a number of regions.
"It is likely that weaker market activity has impacted on respondents' house price expectations this quarter.
"The drop in respondents' expecting house price gains was most acute in Auckland and a degree of "surely prices can't keep rising" might also have been impacting respondents' answers," the report said.
The survey also found that 43% of respondents expect interest rates to rise over the coming year compared to just 25% in October, while just 6% expect them to fall, down from 25% in October, with 25% expecting no change and and 25% who don't know.
"With most major banks increasing mortgage and term deposit rates recently, it's no real surprise interest rate expectations have also lifted," the report said.
Click on the link below to read ASB's full report:
12 Comments
The ill old parents cost less than the well fit parents who after 10 yrs collect NZ pensions for a very long time without ever working in NZ or paying income tax in NZ.
No thought was ever done about future consequences because by then Mr Key would be living in Hawaii
I hate to think what driving in Auckland must be like now & how overloaded schools & hospitals must be.
Where are the leaders with any brains ? We were conned John Key was brilliant and yet he was not
'At the end of the day' it was all about John, not NZ. It's quite outrageous that we allowed him to use the 'racism' card to downplay the foreign ownership issue - as opposed to clearly getting the facts and deciding what we thought was appropriate as a country.
But again I'm pretty sure that his followers didn't mind that he regularly lied over these types of issues around housing, because they knew he was making them wealthy through capital gains (and in turn JK rewarded via the polls). But hey, we're doing pretty well on the corruption polls so there's obviously nothing wrong with our political system and policies - just democracy doing its thing...home owners and politicians feathering their own nests (that's what leadership is all about right?)
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