Friday 16 April 2010
QV.CO.NZ Housing Survey - March 2010
Price drops expected
The results of the latest survey of the New Zealand housing market carried out by QV.co.nz shows a dramatic turnaround in expectations for prices over the next year. The majority of people now expect prices to drop, in contrast to our last survey in September when the majority expected prices to rise.
Property values are still the main factor affecting people’s decision to buy or sell, but its influence has lessened. So too has job security, with 15% listing that as a factor compared to 29% last June and 22% in September. Respondents’ indicated tax changes signalled for the May budget are also a factor for them. This was a particular issue for property investors.
Overall, respondents’ still believe it is a good time to buy, but there has been a decline since the September survey. As a result fewer people intend to buy in the next twelve months. However more are intending to sell in the next year than was the case in the last survey.
Property investment continues to decline as a reason for people to buy or sell property.
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