More encouraging news from the respected ASB that the worst may be over and house prices may continue to rise after remaining flat for some years.
I predicted this at the beginning of the GFC and was roundly criticised for it by the ignorant. My prediction at the time was based on decades of experience on how Kiwis react
when it comes to selling their homes. Most people will only sell when under pressure. Otherwise they just hang on and either forget about selling or renovate where they are and make their current home more comfortable . Remember most forced sales arise from Death, Divorce or d’bank .
It is also a fact that the halving of interest rates has made a huge difference to the ability of most people to hold onto their homes or to buy.
A word of caution.
Interest rates may be low but inflation is lurking in the back ground. With inflation comes higher interest rates off set by higher prices for hard assets (including property) .
Keep an eye on inflation trends and be ready to switch to fixed rates the moment it re-appears.
Houses prices seen up just 3% nationally over coming year – ASB
Conor O’Brien | Thursday November 24, 2011
Housing confidence remains stable despite dipping slightly in ASB’s latest housing confidence survey for the three months to October 30.
A net 24% of respondents believe it is a good time to buy a house, down 1% from 25% the previous quarter.
All regions responded positively that it was a good time to buy a house except for Christchurch which responded with a net -6%, compared to the rest of the South Island which reported 27% confidence.
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