This as interest rate cuts loom
The latest ASB Housing Confidence Survey revealed a significant jump in Kiwis expecting lower interest rates, with 20% now predicting a drop – the highest figure since October 2020.
“We see a clear shift in sentiment,” said Yen Nguyen, ASB economist, and Kim Mundy (pictured above), ASB senior economist.
House price confidence dips
Expectations for house price growth took a sharp decline. While 13% of respondents still anticipate higher prices, this is down from 44% last quarter.
“The data shows a mixed bag – while optimism remains, the rapid decrease is striking,” Nguyen and Mundy said.
Is it a good time to buy?
Opinions on whether it’s a good time to buy property remain split.
A net 8% believe now is a good time, a slight increase from last quarter. Auckland respondents were the most optimistic, with 16% agreeing it’s a good time to buy, ASB reported.
Conflicting forces in play
Despite anticipated interest rate cuts, factors like the soft economy, higher debt servicing costs, and plentiful housing supply are tempering expectations for house price gains.
ASB expects only a gradual housing market recovery in late 2024, with more substantial growth in 2025.
Read the full ASB report here.
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