ASB chief economist Nick Tuffley

PHOTO: ASB chief economist Nick Tuffley

The housing market is expected to continue to run red hot, despite looming headwinds.

The July quarter ASB Housing Confidence survey indicates a net 59 percent of respondents expected house prices will continue to increase, even though a net 54 percent expected interest rates to also rise.

Price optimism remained strong despite ASB forecasting house price growth to drop to just 2 percent next year.

ASB chief economist Nick Tuffley said he was not surprised people were doubtful of a slowdown, particularly with housing demand still outstripping supply.

ASB

ASB Housing Confidence survey shows Kiwis are bullish about house price growth

“Given the recent government changes and new regulations have so far only slightly impacted the market, it’s understandable that Kiwis are sceptical about a slow-down, particularly as annual house price growth has most recently hit 30 percent,” he said.

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