The latest ASB Housing Confidence Survey reveals Kiwi buyers are pulling back as inflation and global fuel pressures point to rising interest rates.

The mood around the Kiwi property ladder is shifting gears. Confidence in New Zealand’s housing market has softened this quarter, driven by a sharp turn in interest rate expectations and broader global economic uncertainty, according to the newly released ASB Housing Confidence Survey.

The data shows a distinct drop in optimism, with fewer households expecting house prices to rise over the next 12 months. Economists point to global fuel shocks pushing domestic inflation expectations higher, leading a staggering 74% of respondents to believe mortgage rates have already bottomed out for this cycle.

While the abundance of available listings means buyers still have plenty of time and choice, the reality of potential Reserve Bank rate hikes later this year has many Kiwis adopting a more cautious, wait-and-see approach.