ASB’s latest housing confidence survey shows fewer people think now is a good time to buy – but investors won’t be among them, according to Auckland Property Investors Association president David Whitburn.
The survey found that while house price expectations continue to lift, confidence about now being a good time to buy has declined – particularly in Auckland and Christchurch.
A net 59% of respondents now expect prices to rise over the next 12 months, just a fraction below the January 2003 peak of 61%. In the latest survey, price expectations increased the most in Auckland and price expectations remain highest in Christchurch and Auckland.
The net percentage who thought now was a good time to buy fell to 13% from 22%, and was lowest in Christchurch and Auckland.
Whitburn said investors still thought it was a good time to buy, and had a better understanding of the cyclical nature of the property market. “There’s less fear the market is about to tank. Investors think the booms are only just starting and if they don’t buy now, it’s just going to get harder.”
Many investors were expecting prices to rise by another 10% this year, another 10% next year and virtually the same again the year after.
At a meeting of 90 investors, 80% had indicated they wanted to buy another property in the next six months.
Whitburn said the drop in buyer confidence could be put down to how hard some owner-occupiers were finding it to buy a property.