house prices

PHOTO: Time for house price growth to ‘come to a grinding halt’ – Reserve Bank Governor Adrian Orr. The AM Show; Image – Getty Images

Most Kiwis still don’t think house prices are going to stop rising, despite everything the Government has been doing and warnings from the Reserve Bank interest rate hikes are looming.

“Stubborn resistance” is the phrase used in the latest ASB Housing Confidence survey, out on Friday, which shows overwhelming confidence remains in a market already at record highs.

A net 64 percent believe prices will keep going up over the next 12 months (‘net’ is those who think it will minus those who think it won’t – so a balanced result would have a score of zero).

“That represents a bit of a wobble from last quarter’s 73 percent all-time high, but we’re still talking about the third-highest reading in the 25-year history of our survey,” ASB’s report said.

It comes after the Government announced plans to strip landlords’ ability to offset interest costs to reduce their tax liability and the Reserve Bank tightened lending rules to investors with small deposits.

The former policy in the UK helped bring price inflation under control, and the latter helped cool the market a few years ago, before it took off again post-COVID.