Confidence in housing market weakens

Confidence in the housing market has weakened as people await details of expected tax changes in the Budget on May 20 and the start to a series of interest rate rises from the Reserve Bank.

ASB's quarterly survey of sentiment in the housing market has recorded a marked drop in the proportion of people expecting house prices to rise over the next 12 months, to a net 35 per cent from 51 per cent three months ago.

Likewise, fewer see it as a good time to buy a house - a net 29 per cent, down from 33 per cent in the previous survey.

Expectations that interest rates will rise were almost unchanged at a net 59 per cent.

ASB said the survey results were in line with recent data showing a slowdown in activity in the market, largely driven by continued uncertainty about the potential for tax advantages for property investment to be removed in the Budget.

The median number of days it takes to sell a property has been edging up since the spring and is now around the long-run average.

To read the full NZ Herald article, click here

Posted: 7 May 2010

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