Kiwis are experiencing a shift in sentiment regarding the housing market, according to ASB’s latest Housing Confidence Survey. The survey indicates that while optimism is on the rise, respondents do not anticipate a rapid recovery.
The survey, which was based on data from 2,920 individual participants, shows that 24% of respondents anticipate gains, up from 13% in the previous quarter. Additionally, 20% of participants believe it is currently a good time to buy, a notable increase from just 8% last quarter.
Shifting Sentiments
This survey round has seen a marked shift in opinions, with more individuals changing their views from considering it a “bad” time to buy to recognising it as a “good” opportunity. However, despite this positive trend, 48% of respondents remain undecided about whether now is the right time to enter the market.
Rising Optimism in Auckland and the South Island
People in Auckland who had previously held a more pessimistic view have now become the most optimistic in the country, sharing the same outlook with respondents from the South Island. Both regions reported that 29% of participants expect house prices to rise.
Nearly 72% of respondents anticipate that house prices will either remain stable or increase, a decline from the 90% who held this view in the first quarter of 2024.
For ASB senior economist Kim Mundy, this suggests that New Zealanders may still have concerns about various economic factors that could impede house price gains, such as rising unemployment and decreasing net migration.
Overall, ASB’s predictions for the housing market suggest a positive trajectory for house price gains over the next year.