Reserve Bank governor Alan Bollard may be heartened by ASB Bank’s latest survey findings that expectations of house price increases are rapidly diminishing.
Monday, August 9th 2004, 9:39AM
by The Landlord
The survey covering the three months ended July shows only a net 2% now expect house prices to continue to rise over the next 12 months, down from a net 12% three months earlier and down from an average net 50% through 2003.
"People are being realistic in not expecting to see a repeat of the large price increases of the last two years," says ASB chief economist Anthony Byett.
The latest figures showed the national median house price has risen from $184,000 in June 2002 to $243,000 in June 2004, a 32% increase.
The survey also shows most people have got Bollard’s message that interest rates are rising: a net 68% expect interest rates to rise further. That’s up from 58% three months ago.
