House Prices Expectations at a Six-and-a-Half Year Low

The latest ASB Housing Confidence Survey has revealed that expectations that house prices will rise are at a six-and-a-half year low. This means that the number of people who think it is a bad time to buy property has decreased, especially in Auckland.

ASB Chief Economist Nick Tuffley says the change in attitude is most likely due to Auckland’s softening house prices. “Price expectations have fallen to an eight-year low in Auckland as we continue to see the Reserve Bank of New Zealand's (RBNZ) speed limits taking effect.” Annual price growth rates have slowed sharply in North Island regions such as Auckland, Tauranga and Hamilton, while in the South Island (beyond Canterbury) price growth rates remain at approximately 10% per annum.

ASB’s survey shows a discrepancy between the North and South islands. Expectations that house prices will rise in the South Island have lifted to a net 30% from 29%, with Canterbury leading the race at a net 11% up from 8%. The North Island on the other hand is down to a net 20% from 23%. These statistics are comparisons from the last ASB survey and the latest one.

For homebuyers, this is good news. The storm has passed, however temporarily, and now is a good time to jump on the property ladder or go up a rung. The property market is stable, and there are lots of houses and apartments for sale. Letting agents on the North Shore and all over Auckland are busy meeting with potential homebuyers, as people are rushing in to buy while it’s calm.

Harcourts Property Management is one such team of agents. They specialize in helping people buy, sell and rent property. For home rental services and more, get in touch with Udy Realty.