In the second quarterly survey of the New Zealand housing market carried out by QV.co.nz there are signs of improving optimism.
There were plenty of positive comments about the strength of the market in some areas. Good quality, well presented properties were noted to be holding their value well, amid a recent sharp increase in buyer activity. Property values and lower interest rates mean that nearly 6 out of 10 respondents still believe that now is a good time to buy.
Expectations of house price changes over the next year remain negative, although they have improved considerably over the quarter.
There was a strong sentiment expressed by some respondents that the current stability in the property market can’t be sustained, and that negative signs in the global and New Zealand economies must impact house prices. There was also a commonly expressed view that New Zealand house prices have become increasingly unaffordable and that a correction is necessary, and that the worst was yet to come. However the results of the survey show that the number of people holding this view is declining with only a quarter of the respondents expecting further significant declines in property values compared to nearly half the respondents holding this view in our March survey.
There has been a strong increase in the number of people considering buying within the next twelve months, but also a sharp decline in those considering selling. The timing of their activity within the next twelve months has also changed since the March survey, with more people now intending to hold off for at least the next six months. However a higher percentage of those intending to sell are looking to do so within the next three months. This may mean the market will remain more active during winter despite the overall decline in people intending to sell within the year.
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