According to ASB’s quarterly survey, New Zealand’s housing market is continuing at “resilient” levels despite talk of weak sales. A recent survey that gauged November, December, and January reports that 27 percent of those surveyed believe that now is an opportune time to purchase property.
Many people believe that the home prices have stabilized over the last six months with a slight increase and experts anticipate that this year will be stable as well.
Even with the market seemingly weak, confidence remains that home prices will slowly increase and the property market will strengthen.
Fifty-five percent of those surveyed expect that interest rates will increase this year compared to sixty-one percent in a previous survey. Even with a small number of new listings, inventory in comparison with turnover is two times what it was at peak property boom.
When seasonally adjusted, the average number of days it takes a home to sell is 43, which is considerably above the long-run average. The general consensus is that it is a buyers market.
ASB’s quarterly survey may indicate that people agree that now is the time to buy and that conditions are reasonable, but that does not mean that a great majority of people are actually buying.
Auckland’s market has been more resistant than other areas with 21 percent of people expecting home prices to increase. This percent is much higher than the 3 percent in the rest of the North Island and 7 percent in the South Island. Auckland’s higher housing is due largely to higher population growth.