Market could be near a tipping point

ASB says in its latest Housing Confidence Survey, a directionless housing market, high debt servicing costs, plentiful listings, and upfront affordability constraints mean it’s far from a straightforward decision about whether to buy.

For the first time since early 2021, more respondents expect interest rates to fall, than rise.

A net 1% of respondents expect interest rates to fall – down from 15% in January 2024.

Sentiment on the rates outlook is an important guide to future price direction and can help identify turning points, Kim Mundy, ASB senior economist says.