House price rise expectations dwindle
The number of people expecting house prices to rise over the next 12 months dropped significantly during the last quarter, although the number thinking this is a bad time to buy a house held steady at a net 18%.
Tuesday, May 11th 2004, 7:38AM
by The Landlord
ASB Bank’s latest survey found a net 12% are expecting house prices will rise in the three months ended April, down from an average net 50% through 2003.A net 58% expect interest rates will rise, up from 56% three months earlier.
ASB Bank chief economist Anthony Byett says the survey results are a reminder of the cyclical nature of housing.
He notes that the Reserve Bank has already started raising interest rates and that net immigration is slowing. The central bank has raised its official cash rate twice from 5% to 5.5% since late January.
"These factors, plus the survey results, suggest that the housing market may be peaking," Byett says
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