House prices in New Zealand21 May 2015 by News Desk
The cost of buying a house in New Zealand is rising but not as fast as in recent years.
Latest property surveys reveal that 56% of respondents expect house prices to increase over the year ahead.
Although that’s a 3% dip from the previous quarter, when 59% expected higher prices, ASB Chief Economist Nick Tuffley says the sentiment is still very high, with the second highest reading since the early 2013 peak of 63%.
“The results don’t point to house price growth intensifying over the next year, but still suggest a decent pace of growth in the near term. It remains a tight market.”
Interest rate expectations have changed considerably over the last quarter with a net 11% of respondents expecting higher interest rates over the year ahead – sharply down from 34% last quarter and 70% a year ago.