RTTNews - Housing confidence in New Zealand improved in the three months ended April, with more people thinking it was the right time to buy a house, a survey by the ASB Bank said Tuesday.
The Bank's chief economist Nick Tuffley said the increase in sentiment appeared to be closely linked to the dramatic fall in interest rate in the past year. The economist noted that respondents of the survey had become more enamored to the housing market over the last nine months.
Tuffley said housing in New Zealand was an example of green shoots, with the caution over the outlook of prices and the uncertain environment beginning to be overcome in recent months.
On the other hand, the economist cautioned saying that prospective buyers should be realistic about the extent of future capital gains, and to make allowance for the fact that mortgage rates would be higher on average in the future than the rates currently available.
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