Shift in views has been observed in survey
The ASB Bank has released the results of its latest Housing Confidence Survey revealing a decline in the number of Kiwis expecting further decreases in house prices in the next months.
“That shift reflects the broader trends in the data that we’ve seen over recent months, with some timely monthly housing market data showing prices first stabilising, and then making tentative gains,” ASB said in its report.
The bank said the shift was marked in the City of Sails, with residents split on whether the prices will decrease or increase. It also observed that Auckland housing market activity has improved compared to other parts of New Zealand.
The number of Kiwis expecting interest rate hikes has also decreased; however, almost half are still expecting these hikes. ASB agreed on these insights, noting “while the RBNZ may have stopped hiking, it will take some time for the bank to contemplate OCR cuts.”
Kiwis are also split when it comes to seeing now as a “good time” to buy a house. “It’s a tricky environment for many buyers and sellers to navigate. With the market no longer decelerating, the risk of shelling out a load of cash for an asset that quickly declines in value is now less acute. But on the other hand, debt servicing costs remain prohibitive for plenty of prospective buyers and sellers,” the report said.
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