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Kiwi remain confident about buying houses despite slowing market, bank survey says
New Housing Confidence Survey, shows 26% of Kiwi think now is a good time to buy a home.
FAST FACTS
- According to the latest ASB Housing Confidence Survey, 26% Kiwis think now is a good time to buy a home.
- Expectations for further interest rate cuts have declined among New Zealanders, the survey added.
- Buyer sentiment is shown to be mixed across New Zealand.
Kiwi are staying surprisingly upbeat about buying homes, even though the housing market has seemingly cooled down.
According to the latest ASB Housing Confidence Survey, 26% of New Zealanders believe now is a good time to buy property.
While that represents a modest decline from 28% last quarter, it still reportedly sits near a 14-year high.
ASB Chief Economist Nick Tuffley said the numbers show a market caught between opportunity and caution.
“Buyer sentiment is holding up well, even while the housing market remains muted,” Tuffley said.
ASB housing confidence survey findings
“Lower interest rates and stabilising house prices are helping, but weak demand and job insecurity are keeping the recovery in check.”
The survey, released on Monday, also showed a drop in expectations for lower interest rates, with just 36% of Kiwi anticipating cuts over the next year, down from 48% last quarter.
“This shift suggests people are recognising we’re nearing the end of the easing cycle. But if economic conditions remain soft, expectations for more cuts could resurface,” Tuffley said.
House price expectations have also softened. Only 18% of Kiwi now expect prices to rise over the next 12 months, down from 26% last quarter.
According to the survey, Auckland has seen the largest drop in confidence, with just 14% expecting gains, compared with 33% in the previous quarter.
Kiwi are staying surprisingly upbeat about buying homes, even though the housing market has seemingly cooled down.
Elsewhere in the North Island, optimism rose slightly, while the South Island saw a decline, the survey added.
It also revealed mixed buying sentiment across the country.
Optimism in Auckland has improved slightly, while buyers in other regions, especially the South Island, are showing more caution.
However, it was revealed that the buyer sentiment remains strong by historical standards despite challenges such as high housing inventory, weak demand, and ongoing economic uncertainty.
Buyers were encouraged by current lower mortgage rates and stable prices, the survey reported, which provided an opportunity in a market that has slowed after strong growth in previous years.
Tuffley noted that the balance between supply and demand remained the biggest factor affecting recovery.
“Market conditions are shaping up for a gradual uptick, but persistent headwinds – including high inventory, weak demand, and economic uncertainty – mean we’re unlikely to see a sharp rebound anytime soon,” he said.
For everyday Kiwi, the survey signals that while the market is not booming, there are still opportunities for those looking to buy.
Lower rates and steady prices make it more manageable to enter the market, even if dramatic gains are unlikely in the near term.
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