Report reveals buyer sentiment at seven-year high

Other key confidence measures also rose for the second quarter in a row

Report reveals buyer sentiment at seven-year high

Housing market expectations continue to improve – with ASB’s latest quarterly survey revealing that buyer sentiment is now at seven-year high.

ASB’s latest Housing Confidence Survey found that buyer sentiment is at a seven-year high, covering three months to October 2019. A net 13% said this is a good time to buy a house, a jump from only 9% last quarter.

The other key confidence measures, house price and house interest rate expectations, also rose for the second quarter in a row – with a net 27% believing that house prices will increase as compared to only 19% last quarter.

Read more: Report reveals values picking up the pace

Auckland residents were not that optimistic about house price growth – with only 2% expecting rise in house prices. However, 17% thought this is a good time to buy a home, a jump from a net 0% who thought so at the beginning of 2019.

Nick Tuffley, chief economist at ASB, said these findings were consistent with their predictions.

“Housing turnover is finally showing some signs of life after a long period of stagnation,” he said, as reported by Landlords.co.nz. “However, the survey result is bang on the long-run average, highlighting a point we’ve been making in our housing commentaries. While housing indicators have rebounded strongly over the past three months, this should only really be characterised as a return to normality. It is still a long way from ‘boom’ territory.”

“On a positive note, house prices have already lifted almost 4% from the April lows, and near-term indicators point to further gains ahead. We remain comfortable with our forecast for nation-wide house price inflation to rise to 5-6% by mid-2020.”

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