This article is from the Australian Property Journal archive
NEW Zealanders believe the recession is over and the housing market is expected to improve in the coming year, according to the latest survey.
QV’s latest September quarterly survey revealed New Zealanders have had a dramatic change in mood.
45% of respondents believe house prices will rise over the next 12 months compared to 21% expecting a decrease in the June survey.
QV said the dramatic change from last quarter’s survey reflects the relatively rapid turnaround in property values, which was largely unexpected.
“There were plenty of anecdotal comments in the survey noting more interested buyers in the market, and a shortage of quality properties available for sale, leading to these properties selling quickly and prices being strong.
“Of the main factors influencing the decision to buy or sell, job security, financial pressures and lending conditions are now less important than last quarter,” the survey noted.
Compared to last quarter’s survey, a lower proportion of respondents were concerned about financial pressures and job security, seemingly reflecting signs that the worst of the recession is over.
In addition, the proportion of respondents who believe that now is a good time to buy has remained steady, as has the number of people considering buying or selling in the next year — with 46% still intending to buy and 35% intending to sell.
What has changed over the quarter is that those who are considering buying or selling are now thinking of doing so within the next six months rather than waiting longer as was the case last quarter.
A net 41% of respondents believe that now is a good time to buy, up from 38% in June.
QV said the reasons for buying or selling have also shifted slightly with an increase in people considering moving to another area, and a slight increase in first home buyers.
But QV added that despite these optimistic results, the comments received suggest people are still cautious, particularly over whether positive signs in the economy will persist beyond the short term.
Australian Property Journal
