Price expectations continue to fall around New Zealand, according to the latest ASB Housing Confidence Survey. Over 2017 so far, housing market activity has continued to slow as a result of the tighter lending standards imposed by the RBNZ. Further, slowing housing activity has seen house price growth ease (or fall slightly) in a number of regions. As a result, ongoing weak housing market activity has undoubtedly continued to weigh on respondents’ house price expectations this quarter. Interestingly however, the sharpest drop in respondents expecting house price gains was Christchurch. Christchurch’s housing market is rebalancing after a surge of supply following the earthquakes, which has resulted in subdued house price growth in the city.
Overall, the majority of respondents continue to think now is a bad time to buy a house. While price expectations may have dipped, historically-high house prices, higher deposit requirements and expectations for further interest rate increases are likely to be weighing on sentiment. Read fhe full report here