Housing confidence hits 14 year high, ASB survey shows

RNZ News

5 days ago

The survey indicates a net 28 percent of respondents believe it's a good time to buy a house, compared with 23 percent in the previous survey.
Photo:
RNZ / Nate McKinnon
Housing confidence is at its highest level in 14 years according to an ASB survey.
The survey for the three months ended in April indicates a net 28 percent of respondents believed it was a
good time to buy a house
, which compared with 23 percent in the previous survey.
ASB chief economist Nick Tuffley said a combination of stable house prices, high listing levels and lower mortgage rates were likely to be driving confidence.
He said the market appeared to be gradually turning a corner, helped by an increasing expectation mortgage rates were as low as they would go over the next 12 months.
"Expectation for further interest rate cuts dropped again this quarter, with a net 48 percent of respondents expecting lower rates, down from 51 percent last quarter.
"This likely reflects an understanding that we're nearing the end of the easing cycle, and rising concerns about resurgence of inflation this year due to global trade tensions and increasing import costs."
Tuffley said concerns about global growth and job security meant the market was unlikely to heat up quickly.
"While we're seeing encouraging signs in buyer sentiment, we're still in a tentative phase.
"Recovery will be gradual, and we're mindful of lingering challenges such as global growth uncertainty and job security concerns."
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