Confidence in housing stays high, says ASB survey

New Zealanders are still optimistic about the state of the housing market, according to an ASB survey.

Chief economist Nick Tuffley said the majority of respondents still see now as a good time to buy a house with a net 48 per cent. The survey also recorded a "marked shift in house price expectations" with a net 40 per cent of respondents predicting prices will climb in the next 12 months.

"This turnaround in house-price expectations is the largest recorded shift in the survey to date," Tuffley said in a statement. "Lower short term interest rates and evaporating fears of further market decline have no doubt contributed to the very positive outlook for house prices."

House prices hit a 10-year high $355,000 for the month of October, according to Real Estate Institute data, while QV Valuation data showed property values climbed above last year's levels for the first time this year. The revival in property has underpinned the country's economic recovery, though the central bank said in its Financial Stability Report house prices are high relative to incomes and this "may limit scope for a sustained rise."

Posted: 16 Nov 2009

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