Signs pointed to the housing market remaining resilient
Many experts expected the housing market to suffer amid the COVID-19 crisis, impacting the confidence of property investors. However, the latest survey by ASB revealed that Kiwis are confident about climbing the property ladder again.
The latest ASB Housing Confidence Survey found that a net 21% of respondents see that this is the best time to buy a property since 2012.
“We have for some time had one of the most optimistic outlooks for house prices, having since lockdown begun expected a 6% overall decline in New Zealand-wide house prices. We now expect the housing market will perform better than that, circa a 3% decline,” said ASB chief economist Nick Tuffley, as reported by Stuff.co.nz.
Read more: Property still the best investment in the current climate – experts
The respondents commented that people with secured jobs benefit from low-interest rates, and it might now be easier to find the right home without a “boom-time bidding war.”
“We were pleased to see how quickly the housing market bounced out of lockdown, though noted that there had been an element of pent-up demand to be satisfied,” Tuffley said.
Tuffley expects the housing market to remain resilient despite the country being under another lockdown, with Auckland in alert level three and the rest of the country in alert level two.
“Mortgage rates have fallen steadily, so debt servicing costs are lower and look more favourable compared to rents,” he continued. “Borrowing to invest in property also may appeal to those eyeing up the steady decline in term deposit rates.”
“Muted house price growth and lower market expectations may mean more chance of finding a ‘bargain’, and, with New Zealanders ‘trapped’ within their own borders, it is also possible we see people suffering from cabin fever contemplate buying a second cabin in which to feel feverish.”
