THE MOOD OF THE MARKET

House prices expected to keep rising

JAMES WEIR
14/08/2012

A growing number of people think house prices will rise in the next 12 months, but fewer people expect interest rates to rise, according to a bank survey.

ASB Bank’s latest housing confidence survey shows that 61 per cent of people expected higher house prices in the coming year, up from 57 per cent in the previous quarter.

Just 11 per cent of those surveyed expected house prices to fall, giving a net 51 per cent expecting a rise in prices, up from a net 45 per cent last survey.

Demand for houses had picked up recently, but new listings and stock on the market remained at low levels, which had seen an uptick in prices ASB said.

ASB Bank itself is picking a 4 per cent rise in house prices nationally in the coming year, though prices were expected to rise more in Auckland, reflecting a tighter market than elsewhere.

Prices in Christchurch would keep being pushed up because of the shortage of habitable property after the earthquakes last year.

Read the rest here:

http://www.stuff.co.nz/business/money/7475851/House-prices-expected-to-keep-rising

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