Government torpedoes fail to sink housing market

There has been a further modest decline in ASB’s housing confidence survey. But Kiwi perceptions of house price growth remain around a level seen during the peak of price confidence in past housing booms.

The latest ASB survey shows in the three months to July a net 58% of people expected house prices to rise over the following 12 months. This was down from a net 64% in the three months to April and a net 73% historical peak in the three months to January.

The current net balance is made up of 65% expecting prices to increase and 7% expecting declines.

This is despite widespread predictions from economists of a slow down or even a price drop.