Survey shows confidence in housing market growing

ASB says optimism in the housing market is growing. The bank's Housing Confidence Survey showed 29% of respondents say now is a good time to buy a house, compared to 27% in January.

The survey also revealed a significant drop in the number of people who believe interest rates will rise.

Chief economist Nick Tuffley says just over 35% of respondents now expect interest rates to rise this year, down from 55% in January.

He says one of the key events since the last survey results was a cut in the Official Cash Rate by the Reserve Bank to 2.5% in March, after the earthquake, which seems to have influenced the survey results.

Mr Tuffley says house price expectations have also risen by 2% since January, with 11% of people surveyed predicting prices will rise over the next year.

He says the ASB is also expecting house prices will edge up this year by 2% to 3%.

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