With increasing interest rates and soaring median house prices, Kiwis are losing confidence over their ability to fulfil their dream of owning a home. More and more people are being driven away from reaching this dream, according to ASB’s latest housing confidence survey.
The average Auckland house was valued at $1,045,207 as shown by data revealed by QV this week.
This survey showed 35 per cent of respondents think its a bad time to buy a house with only 10 per cent saying its a good time bringing Kiwi confidence to an all time low.
“Since 1996, there has never been a greater proportion of people who think it is a bad time to buy a house than now,” ASB said. “While sentiment remains lowest in Auckland, other regions registered the sharpest falls this quarter.”
The ongoing expectation of rising prices along with the latest loan-to-value ratio (LVR) restrictions have subdued buyers confidence, said ASB chief economist Nick Tuffley.
“The fact that the 40 per cent investor deposit requirement is having a proportionately larger impact on investors outside of Auckland could explain why sentiment dropped more in other regions this quarter,” Tuffley says.
Now could be the best time to rent a home with the increasing barriers in the way of purchasing – talk to us at Metro to see how we can help you find a house to call your home.