RTTNews - There were improved signs of optimism in the New Zealand housing market, yet caution remains, the latest quarterly survey from the QV.co.nz said Friday.
A net 38% of respondents believed it was a good time to buy compared to only a net 30% in the March quarter.
The report said expectations about house price changes over the next year remains negative, although they improved considerably over the last quarter. A net 21% expect house prices to drop over the next 12 months compared to a net 50% in the March survey.
A net 51% said property values were a major factor influencing the decision to buy or sell property, while 32% said interest rates and 29% listed job security.
Some respondents were of the view that the current stability in the property market could not be sustained and the negative signs in the global and New Zealand economy would impact house prices.
At the same time, the proportion of people indicating that house prices have become unaffordable and a correction is needed, declined, with only a quarter of the respondents expecting further significant declines in property values compared to nearly half the respondents holding this view in the March quarter, QV.co.nz said.
Meanwhile, there was a strong increase in the number of people considering buying within the next twelve months, but also a sharp decline in those considering selling. A net 46% are considering buying properties over the next 12 months compared to 32% who are considering selling. Further, a net 31% said they were either buying or selling properties as an investment, the report added.
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