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House price expectations starting to cool

Author
Jacqui Stanford,
Publish Date
Mon, 20 Feb 2017, 9:05AM
Photo / NZ Herald
Photo / NZ Herald

House price expectations starting to cool

Author
Jacqui Stanford,
Publish Date
Mon, 20 Feb 2017, 9:05AM

With the housing market not flexing quite as much muscle, price expectations are starting to cool.

ASB's January quarter Housing Confidence Survey shows price expectations have dipped across the country.

Now, just 46 per cent of people believe house prices will rise - one of the lowest levels recorded since 2012.

ASB Chief Economist Nick Tuffley said the slip in expectations is most pronounced in Auckland.

"I think one of the challenges the Auckland market has, is that it's been hit for a second time by investor loan restrictions, also affordability is very stretched in Auckland as well."

Tuffley said market activity has also been weaker, which has clearly impacted on price expectations.

However, he said at the same time buyer sentiment has improved - a smidge.

"Generally we've seen people being quite pessimistic about wether its a good or a bad time to buy, there's still a degree of pessimism but its not quite as bad as it was in previous quarter."

The survey has also found an increase in the number of people who believe the days of super low interest rates are over.

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