More people expecting house prices to rise in Auckland
A growing number of people are expecting house prices to rise in Auckland, while in the rest of the North Island higher prices are considered increasingly unlikely.
A growing number of people are expecting house prices to rise in Auckland, while in the rest of the North Island higher prices are considered increasingly unlikely.
The ANZ housing confidence survey for the three months to January found 21 percent expected higher prices in Auckland, up from 19 percent in the preceding three months.
For the South Island, 7 percent expected rising house prices, up from 2 percent, while for the rest of the North Island the figure fell to 3 percent from 4 percent.
For the country as a whole, 9 percent of respondents expected house prices to rise in the next 12 months, up from 8 percent.
Twenty-seven percent thought now was a good time to buy, down from 28 percent in the three months to October.
ASB chief economist Nick Tuffley and economist Christina Leung said respondents had retained a degree of caution about the housing outlook, despite a continued decline in interest rate expectations.
Housing market activity had remained weak, reflecting weak demand which had started to flow through to falls in house prices more recently.
The housing market in Auckland was relatively more resilient, the ASB economists said.
"Recent data also reveal a tighter housing market in Auckland, with a relatively larger decline in new listings in the region. As a result, total housing inventory in Auckland is proportionately lower than for NZ as a whole," the economists said.
"The relatively tighter housing market in Auckland is due to stronger fundamental factors, particularly higher population growth. High housing demand in Auckland is also flowing through to stronger rental inflation in recent months."
NZPA and NBR staff
Tue, 22 Feb 2011
Tue, 22 Feb 2011
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More people expecting house prices to rise in Auckland
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