The housing market has become riskier, but low interest rates are keeping homes affordable and the boom shows little sign yet of running out of steam, ASB Bank concludes from its latest quarterly housing survey.
Saturday, October 11th 2003, 5:12AM
by The Landlord
Expectations of more price rises are moderating, people expect interest rates to rise and their sense that this is a good time to buy is fading fast, the survey shows.
But the market remains very busy. Said ASB chief economist Anthony Byett: "In spite of high prices and in spite of all their reservations at the end of the day, people find it's affordable and they do it."
A Weekend Herald special report on the housing market found last month that the annual increase in house prices was the highest in 20 years, but the length of this boom was less than half the 1990s one.
Mr Byett expects the upswing in prices to continue for 12 months.
