Price expectations heading downward
Only 17% of the survey respondents expected house prices to become higher in the next year, with Auckland property expectations being the lowest in eight years with only 9% expecting prices to rise. In the last quarter 32% believed that house prices would rise.
North Island respondents outside of the Auckland region also expect house prices to remain soft, with only 23% predicting an increase.
These results represent the fifth quarter in a row that housing expectations have fallen. According to ASB economist Nick Tuffley, this fall has been precipitated by a number of factors, including the recent election.
“Loan-to-value ratio restrictions and slightly higher mortgage rates were causing most of the softness. But in recent months, uncertainty around the election has seen the market slow even further,” he says.
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