Latest research from ASB show a big jump in NZ house price expectations in face of low rates and supply.
A net 45 percent of respondents expect house prices to increase in the next twelve months, compared with 27 percent in the three months ended Jan. 31, according to the ASB’s Housing Confidence Survey.
A net 21 percent believe now is a good time to buy, up 1 percent, while 43 percent see interest rates rising in the coming year, up from 27 percent.
Rising house prices are not deterring first homebuyers from entering the market. Helped by low interest rates, the current wave of first homebuyers was the first of a savvy home buying group, BNZ’s chief economist Tony Alexander says.
“I think we’re just seeing the first wave of canny first homebuyers entering the market at the moment, they see the discussion about growing housing shortages, prices that are already rising and once we get the labour market being a lot stronger next year we’ll get a lot more of those buyers coming forward. I think this trend will continue and strengthen,” he says.