House prices are expected to keep escalating over the next year and more people think it's a bad time to buy.
A housing confidence survey by ASB shows property price expectations reached a new high in the three months to April, with 63% of respondents thinking prices will rise.
That figure is above the previous peak of 61%, recorded in January 2003.
Only 8% of those surveyed say it's a good time to buy a house, a drop from 13% in the previous three months.
Supply constraints in Auckland and Christchurch led the growth in prices and ASB chief economist Nick Tuffley said low levels of new listings and strong buyer competition are affecting housing confidence.
"What will be quite an impact on people's perceptions will be - particularly in those two centres where the market's pretty tight - it's very hard to find a house and you're also seeing prices rise quite rapidly as well."
