PHOTO: ASB was now expecting an annual house price rise of 12 percent in the year to June 2021. (File image). Photo: Unsplash / Nick Sarvari
Investor confidence has bounced off record lows but remains pessimistic, despite a surging sharemarket and a strong bounce back in house prices.
The latest quarterly ASB Investor Confidence Survey shows sentiment rose 14 points to a negative 11 percent.
ASB senior economist Chris Tennent-Brown said pessimism had been the prevailing mood because of the Covid-19 lockdowns, with predictions of sharp falls in house prices, and volatile financial markets.
“Fast forward a few months and national house prices have bounced back to fresh record highs. Uncertainty is never good for confidence but as the Covid picture in New Zealand has become clearer, a rising tide of confidence has been reflected in this survey.”
He said there were a number of factors affecting investor sentiment as a whole.
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