INDEPENDENT NEWS

NZ On Verge Of Surge In Housing Activity

Published: Fri 4 Oct 2002 03:40 PM
NZ On Verge Of Surge In Housing Activity
New Zealand could be on the verge of another surge in housing activity according to Anthony Byett, Chief Economist, ASB BANK.
The latest ASB BANK Quarterly Housing Confidence Survey reveals the majority of people expect rising house prices, an expectation that waned around July but has come back strongly in recent weeks.
“While other confidence indicators in the latest survey are mixed the overall outlook remains positive, underwritten by persistently strong demand for houses.
The mixed nature of people’s response to the survey relates to the disparity between high expectations of rising house prices but a low belief that now is a good time to buy.
The survey shows that on average over the September quarter, 45% of respondents believed that house prices would increase (54% in the June Quarter), 24% believed it’s a good time to buy a house (35% in the June Quarter) and 53% believed that interest rates will increase (71% in the June Quarter).
The disparity is particularly high in Auckland with an average of 53% of respondents believing house prices will increase with just 17% believing it’s a good time to buy.
“The mixed confidence levels uncovered by the survey are likely to be due to people’s anxiety regarding the global economic outlook and, to a lessor extent now, expectations of higher interest rates” says Mr Byett.
“The anxiety about the global economic outlook is being driven by a faltering global economic recovery, falling share prices, rising oil prices, the threat of terrorist attacks and the growing prospect of war in Iraq. “This same sort of anxiety is being picked up in other measures of confidence about the general economy—so it does not just relate to housing confidence.
In this regard, the current issue of ‘Rotting Homes’ does not appear to be affecting housing confidence in general although there will invariably be less confidence now in some types of houses.
“More generally, the situation of strong demand and limited supply persists and the overall outlook for the housing market remains positive. In recent weeks, fixed home rates are declining and housing activity is increasing again.
“Views on whether it’s a good time to buy a home may become more positive now as people become less fearful of higher interest rates.
“The potential for higher house prices appears greatest in Auckland, both due to the underlying supply and demand situation and to the expectations shown in the latest ASB BANK Quarterly Housing Confidence Survey.
On average 53% of Aucklanders believe house prices will increase, which is 11% ahead of the rest of the North Island at 42%, and 9% ahead of Mainlanders of whom an average 44% believe house prices will rise.
“The situation is ripe for a busy summer in the housing market,” says Mr Byett.
ASB Bank
Helping you get one step ahead.
In 1847, ASB opened as the Auckland Savings Bank with the pledge: 'to serve the community; to grow and to help Kiwis grow'. And that is very much what ASB is about today.
ASB is a leading provider of integrated financial services in New Zealand including retail, business and rural banking, funds management and insurance.
ASB strives to consistently provide its customers with outstanding service and innovative financial solutions. They're dedicated to providing simple financial products that allow their customers to bank with them how and when they want.
We all have our own ways to measure progress, and our own stories about the things that matter to us. Whatever way you choose to measure progress, and whatever your goals, ASB is there to help you get one step ahead.
Contact ASB Bank
Website:

Next in Business, Science, and Tech

The Download Weekly - Vodafone FibreX back in court
By: Digitl
Tonga Eruption Discoveries Defy Expectations
By: NIWA
Commission Appeals Record $2.25m Fine In Vodafone FibreX Case
By: Commerce Commission
Quiet Start For Retail In 2022
By: Statistics New Zealand
RBNZ Survey: 64% Of Experts Say Rising Inflation Will Push More Kiwis Into Debt
By: Finder
Barfoot And Thompson Rental Update: Rents Up By Around 3% In Most Areas
By: Barfoot and Thompson
View as: DESKTOP | MOBILE © Scoop Media