Kiwi consumer confidence rises but not for home prices

The latest index from ANZ and Roy Morgan Research shows that fewer New Zealand consumers expect to see home prices increase

Kiwi consumer confidence rises but not for home prices
Momentum may be slowing in the New Zealand housing market but there are plenty of other positives for the country’s households.

The latest index from ANZ and Roy Morgan Research reveals that Kiwis are more confident in their finances and are likely to spend more, with the sentiment driven by factors including the jobs market, a high NZD that’s keeping prices down, and the Government’s $2 billion family package injection.

House prices are still expected to rise by the majority of respondents but the share of those that think so, and the amount they believe they will rise by, are both lower this month.

Asked whether they think New Zealand house prices will rise in the next 2 years, 63% said they thought they would (down from 66% in May and 70% in April.) The increase was expected to be 4%, down from 4.6% in May and 5.2% in April.

The share of those that thought prices would go down increased to 13% (from 10.9% in May).

Overall confidence pushed the index to its highest reading since January and also saw the second highest share of those that say now is a good time to buy a major household item.

The percentages rose for those that think we will enjoy good times financially in the next 12 months (45%), those who think they and their family will be better off in a year’s time (47%).