New Zealand’s once-hot housing market is cooling, and it’s clear from the latest ASB Housing Confidence Survey released today that many Kiwis expect that trend will continue in the year ahead.

As seen in the chart below, the survey’s net house price expectations index hit a more than five-year low in July.

“Auckland respondents remain the driving force behind this move, with only a net 15% of respondents in Auckland expecting house prices to lift, the lowest level in eight years,” said Kim Mundy and Nick Tuffley, economists at ASB Bank.

“However, this was not an Auckland-only phenomenon, with a lower proportion of respondents across New Zealand expecting house price gains over the next 12 months.”

Mundy and Tuffley say the result reflects a slowdown in housing turnover following strong price growth in prior years and tighter macroprudential measures introduced by the Reserve Bank of New Zealand last year.

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