ASB economist Kim Mundy said the result came as no surprise, given the softness seen in the housing market in the past 12 months. Initially, the loan-to-value (LVR) restrictions and slightly higher mortgage rates accounted for much of the softness.
More recently, uncertainty regarding the general election meant the market slowed further.
Prices had started to fall in Auckland and Christchurch at the time of the last ASB housing survey and had continued falling since.
"It’s no surprise to see house-price expectations continue to ease in these centres."
In the three months to October, falling Christchurch house prices coincided with, for the first time in more than a year, more people thinking it was a good time rather than a bad time to buy in that city, she said.
The more positive view was not the case in Auckland and probably reflected Auckland house prices remaining at a high, unaffordable, level, despite the recent small price falls.
Respondents remained cautious about the interest-rate outlook and the majority picked interest rates to stay the same or lift during the next 12 months.
However, the expectation was down from the highs seen earlier in the year and probably represented mortgage rates settling, if not falling slightly, since the last survey, Ms Mundy said.
Outside Christchurch, it was still a bad time to buy a house. The combination of plenty of supply in the Christchurch market and falling house prices appeared to be boosting sentiment in the city. And outside Christchurch, pessimism over whether it is a good or bad time to buy still reigned.
With several influences affecting the housing market, including new housing policies, uncertainty around the outlook was probably keeping many respondents cautious, she said.
