23 Feb 2010

Confidence in housing market eases

3:12 pm on 23 February 2010

Confidence in the housing market eased in the three months to the end of January, though it was still at historically high levels.

ASB's quarterly housing confidence showed an increase in those expecting price rises but a fall in confidence generally.

A net 48% of those surveyed for the bank expected prices to increase - up from 40% at the end of September.

Aucklanders were the most confident of future price rises at the same time as optimism faded around the rest of New Zealand.

General confidence in the housing market fell - especially in the South Island - but is still at around eight-year highs.

ASB economists put the easing in confidence down to expected tax changes and interest rate rises.

The bank expects the market to tread water until tax changes are revealed in the Budget on 20 May.