Relief that the budget's taxation measures weren't as bad as feared has boosted sentiment among home buyers and investor, a Quoteable Value survey has found.
The survey (see attached below) found 50% believed now was a good time to buy, up from 44% in a survey done in March. This improved the net number of those saying now was a good time to buy to 31% from 23% in March.
A new survey question asked if now was a good time to sell and only 13% agreed or strongly agreed, while 58% strongly disagreed or disagreed.
However, a net 10% of those surveyed expected prices to fall, down from a net 39% expecting price falls in March. QV found 33% of those surveyed saw prices rising, up from 12% in March, while 43% saw prices falling, down from 51% in March. Only 23% expected prices to be unchanged, down from 32% in March.
Quoteable Value Research Director Jonno Ingerson said the budget appeared not to be triggering an exodus of property investors.
"The budget does not appear to have led to a large number of property investors intending to sell up or exit the market," Ingerson said.
"Over half intend to retain their current portfolio, with only 8% intending to sell some or all of their investment properties," he said.
"In contrast 20% intend to buy investment properties. While 18% remain undecided, the overall results appear to show that the budget changes have not forced many investors out of the market," he said.
However, property investors are holding back a bit before buying more.
"While the number of investors intending to buy or sell property is quite low, those that intend to sell are either going to do so quickly or not for at least 6 months. For those intending to buy, few intend to do so within three months, but seem to be waiting longer, perhaps for prices to fall further."
The survey also found rental property investors expected to increase rents.
It found 53% of those surveyed planned to increase rents, mostly by 1% to 5%, while 19% expected to increase rents by 6-10%.
There were 3% planning to increase rents by more than 10% and 4% who expected to cut rents.