PHOTO: An ASB bank housing confidence survey for the three months to October shows a drop in the number of people who think it’s a good time to buy a house. Photo credit: Getty.
The heat in the housing market appears to be getting too hot for some.
The ASB bank’s latest housing confidence survey for the three months to October shows a net 12 percent of people thought it was a good time to buy a house, a 9 point drop on the previous quarter.
It found that nearly half of respondents thought house prices would rise over the next 12 months, a 54 point increase on the July quarter.
ASB senior economist, Mike Jones, said steep house prices were turning off some buyers.
“There’s too much demand for quite a restricted supply and there are number of factors out there, be it lower mortgage rates or certain other policy stimulus that are boosting demand at the moment.”
However, he said there were signs that sentiment would improve.
“I think the reimposition of LVRs (loan-to-value restrictions) is potentially one, but you’re also seeing both the government and the Reserve Bank under pressure to tackle the housing issue and I think we will see some more measures next year designed to bring a bit more stability to the housing market.”
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