INDEPENDENT NEWS

Latest ASB NZ Housing Confidence Survey Released

Published: Fri 19 Aug 2011 08:48 AM
ASB NZ Housing Confidence Survey
Rising house price expectations fail to boost housing optimism
* Housing Confidence dropped slightly in the July 2011 quarter * House price expectations increase across the regions, with Auckland leading the way * Heightened expectations of interest rate increases over the next 12 months
Housing confidence eased slightly over the three months to the end of July, according to the latest ASB NZ Housing Confidence Survey.
The ASB Housing Confidence Index edged down two points over the quarter, with a net 25 percent of respondents saying that now is a good time to buy a house, compared to 27 percent in the previous quarter. Sentiment remains slightly above the historical average of net 22 percent.
ASB Chief Economist Nick Tuffley says house price expectations have risen across the regions, with a net 25 percent of respondents now expecting house prices to increase over the coming year. "House price expectations remain highest in Auckland, consistent with recent data showing a tighter supply of housing in this region compared to the rest of the country. Despite the boost in price expectations across New Zealand, however, housing confidence still dropped slightly, reflecting a continued caution in the market. "
A month-to-month breakdown of the results showed a drop in housing confidence and price expectations in Christchurch over May and June. The June earthquakes are likely to have added to the downbeat mood - however there was some rebound in July, particularly for price expectations. House sale data also shows a decline in house sales in June reflecting the disruptions from the earthquakes that month, followed by a recovery in July. "These developments suggest there remains underlying demand for undamaged properties in Christchurch," Mr Tuffley says.
There was an increase in the number of respondents who expect interest rates will increase over the next year. "Just over a net 46 percent of respondents now expect interest rates to rise, up from a net 34 percent in the April quarter. Signs the economy has been improving have no doubt contributed to household expectations that the Reserve Bank would raise the OCR earlier. However, there has been significant volatility in global markets since the survey was taken, which adds some uncertainty as to when interest rates will rise," he says.
Recent market data have also shown a gradual pick-up in housing market activity. Mr Tuffley says the median number of days to sell a house has continued to edge lower to 41 days, although the measure remains above the long-term average of 39 days.
"We expect house prices nationwide to grow modestly at a rate of around 3 percent over the coming year. House price growth in Auckland is likely to be stronger than that, reflecting its relatively tighter market." Mr Tuffley says.
HousingConfidenceAug11 (pdf)
ENDS
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 Sky Is The Limit - Air New Zealand To Relaunch 14 International Routes In 16 Days
By: Air New Zealand
Update On Hidden Economy Real Estate Campaign
By: Inland Revenue Department
Consumer Confidence Plummets To Record Lows As Financial Pressures Mount
By: Westpac
NZ Economy: Prevailing Headwinds
By: BusinessNZ
Shared Cheese Heritage Should Be Shared Not Stripped
By: NZ Specialist Cheesemakers Assn
Download Weekly - $60 million for more rural connections
By: Digitl
View as: DESKTOP | MOBILE © Scoop Media