Significantly more people expect house prices to increase over the course of the year than they did in January, according to the latest ASB Bank Housing Confidence survey.
Thursday, May 19th 2005, 6:49AM
by The Landlord
A net 28 per cent expect prices to continue to rise, up from net 9 per cent in January.
The optimism was despite a neutral stance among those surveyed by ASB in the three months to April as to whether it was a good time to buy or not.
At the same time, expectations of further interest rate increases rose from net 51 per cent in the three months to January, to net 62 per cent in the latest quarter.
When asked if it was a good time to buy a house, 24 per cent considered it was and 25 per cent considered it was a bad time, giving a net -1 per cent. This was down from net 5 per cent of people in the January quarter who considered it a good time to buy.
Confidence at that time was being driven by the Reserve Bank's announcement in October that it did not expect to increase interest rates further, and a mortgage rate war between banks over the two-year fixed rate.
ASB Bank chief economist Anthony Byett said the confidence in house price increases was still being driven by the rebound that started in November.
