Interest increasing in North Shore homes

The housing market might not be rosy - but it is positive, according to survey results from Massey University's real estate analysis unit.

The unit analysed the North Shore City, Wellington and Christchurch markets, and found plenty of people seeking high-quality housing in areas such as Takapuna.

The analysis is based on confidential questionnaires completed each quarter by a panel of each region's real estate market experts, including bankers, solicitors, developers, real estate agents, property consultants, property managers, valuers, property owners and property analysts.

The experts were confident about the outlook for North Shore property.

An analysis showed 52 per cent expected the market to improve during the next six months against 43 per cent who thought it would stay the same.

Panellists forecast that during the next quarter there would be increases in sales volumes and prices for most types of houses in the area.

Buth they do not expect increases in sales numbers or prices for units, apartments and sections.

Massey University unit lecturer Garry Dowse said the survey looked at the "mood" panellists were getting from their clients.

"There's probably a bit more positive mood from that point of view, a greater level of inquiry, but it may be a little bit early to say that they have noticed an increase in volume as such.

"It's activity from the point of view of inquiry and property listings," he said.

"The things that are indicators driving that are the lower interest rates.

"Also, prices have eased in places so the whole affordability thing starts coming through."

People were keenly seeking high-value properties on the North Shore - such as homes with water views, he said.

"It appears that segment of the market is not hit so significantly from the point of view of needing to borrow."

Panellists said greater activity since the beginning of the year had been boosted by falls in mortgage rates.

The survey found overall confidence in the Wellington residential market had continued to improve, following an upward trend in the latter part of last year.

About 60 per cent of panellists expected the market to improve during the next six months, up from about 45 per cent who had expected an improvement for the previous quarter.

For the next three months confidence was strong across all market sectors, especially for low and medium-priced housing.

In Christchurch, there was improving confidence in the residential market. There, 58 per cent of panellists expected improvement in the next six months, again especially in low and medium-priced housing.