NZ Herald business editor at large

Poll shows property prices expected to keep rising

ASB chief economist Nick Tuffley said the trend suggested the average house price around the country would rise again this year.
ASB chief economist Nick Tuffley said the trend suggested the average house price around the country would rise again this year.

The number of people expecting price gains in the housing market is more than 50 per cent in the first quarter of the year, according to the ASB Housing Confidence Survey.

The survey indicates respondents believe the upward house price momentum has not yet ended.

And while confidence in further house price increases is below that of the peaks during 2014/2015, 59 per cent of respondents do expect higher house prices.

ASB chief economist Nick Tuffley said the trend suggested the average house price around the country would rise again this year.

"Influenced by higher Auckland house prices [and] the spill-over effect from Auckland property prices in earlier quarters, and due to the still-declining interest rates, we expect the nationwide average house price to increase around 5-6 per cent over 2016," Tuffley said.

The April house price data from the Real Estate Institute is due out this morning.

The Reserve Bank's financial stability report, due today, is also expected to put the spotlight on the nation's housing market boom.

Tuffley said he expected the Reserve Bank would cut the official cash rate - now at 2.25 per cent - by a further half a percentage point over the rest of the year.

- NZ Herald

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