House price expectations are highest in Auckland, according to the latest ASB NZ Housing Confidence Survey which finds that housing confidence has fallen slightly in the past three months."Expectations for rises in house prices have fallen across all
House price expectations are highest in Auckland, according to the latest ASB NZ Housing Confidence Survey which finds that housing confidence has fallen slightly in the past three months.
"Expectations for rises in house prices have fallen across all regions except Auckland," ASB chief economist Nick Tuffley said.
"A net 8 percent of people we surveyed across New Zealand expected prices to increase, significantly down from a net 19% last quarter. Auckland now has the highest price expectation across the regions," he said.
A breakdown showed that a net 19% of people expect house prices will increase in Auckland compared to a net 4% for the rest of the North Island. The figure is just 2 percent for the South Island.
Overall, 33% expect higher prices, down from 38% last quarter, with 25% expecting lower prices, up from 19% last quarter. The 37% expecting no change is little different from 38% in the previous period.
There has been little change in the survey's measure of whether or not it is a good time to buy a house.
A net 28% of respondents say that now is a good time to buy, compared to 29% in the previous quarter. This small decline occurred against a backdrop of a slide in perceptions around house prices.
Mr Tuffley said fewer people expect interest rates to rise but this is not fuelling housing confidence.
A net 61 percent of respondents now expect interest rates to rise, down from a net 71 percent in the July quarter.
"This subdued interest increase expectation would usually fuel housing confidence, but is balanced out by the fall in price expectations," he said.
The survey results are in line with recent data showing signs of a continued slowdown in housing market activity.
Mr Tuffley says the median number of days taken to sell a house has continued to edge up and is now well above the long-term average.
"We expect the outlook for the housing market will remain subdued given waning housing turnover. Beyond 2010, we forecast weak house price growth, tempered somewhat by population growth and net migration," Mr Tuffley said.
