Weak housing market starts to grow shoots

The housing market, which has been depressed for the past 18 months, appears to have bottomed out - at least in Auckland.

Though prices remain soft, the number of reported sales has risen in the past month and far fewer properties have been passed in at auction.

The apparent change of heart reflects not so much the state of the economy but a slow turnaround in consumer confidence brought about by record low interest rates and greater housing affordability, especially for first-home buyers.

This is reflected in the latest ASB housing confidence survey, which shows that in the past nine months those surveyed have become increasingly attracted to the housing market. For the most recent quarter - the three months to April - 59 per cent of respondents felt it was a good time to buy a house, compared with 53 per cent in the previous quarter.

To read the full NZ Herald article click here

Posted: 2 Jun 2009

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