15 May 2012

Big increase in people expecting house prices to rise

9:12 am on 15 May 2012

The number of people expecting house prices will rise in the coming year is at a two-year high.

ASB bank's latest housing confidence survey shows expectations are highest in Auckland and Christchurch.

Nearly half of people asked by ASB said they thought house prices would be higher in a year's time than they are now.

That is up from 27% at the end of 2011 and the highest number to answer yes to that particular question in two years.

People from Christchurch and Auckland were the most confident of price rises.

But the bank says other regions are also now seeing an increase in those expecting prices will go up.

However, when asked if now was a good time to buy, just 21% answered yes, barely changed from 20% who gave the same answer at the end of last year.

The numbers expecting interest rates to rise were also largely unchanged at 43%.