Most migrants have two items near the top of their wish-list. One is that the New Zealand Dollar will weaken. The other is that house prices in New Zealand will stop rising. Neither appears to be happening just yet - although people keep hoping.

New Zealand housing activity was high during the first few months of 2005, continuing the rebound that started in November 2004.

The resurgent market was caused mainly by heavy discounting of home loan rates before Christmas and, to a lesser extent, since then says the ASB Bank.

The improving market has led 28% of people to expect further house price rises. This is significantly higher that the 9% who expected rises 3 months ago, when the last ASB Survey was taken.

Currently just 24% of people think now is a good time to buy a house in New Zealand.

According to the ASB, the public’s reaction to the recent housing market rebound is typical.

“A bout of more housing activity tends to raise expectations of future price increases - and it has. It also increases the probability of higher interest rates and people are acknowledging this as well.

“With house prices already very high and with the interest burden now also very high it is unsurprising to see that only 24% of people think now is a good time to buy a house.”