Eexpectations of house price gains increased in recent months to hit almost 60%, just short of the 2013 peak of 63%.
For the Reserve Bank, the heightened price expectations and likelihood of increasing household debt signals it may have to look further afield than just resetting the interest driving official cash rate (OCR) this year.
The ASB's survey for the quarter to January mirrors other, separate, recent data.
Realestate.co.nz posted record new average asking prices in Auckland and Queenstown Lakes of respectively $750,000 and $700,000, while separately, the Real Estate Institute of New Zealand reported the two regions had the highest median price gains around the country for January, up respectively by 16%, to $660,000 and 11%, to $475,000.
ASB chief economist Nick Tuffley said house price expectations had lifted further and a net 59% of respondents expected prices to increase.
Fewer overall expected higher interest rates, but the majority still expected rates to go up during the next 12 months.
Despite the Reserve Bank's four OCR hikes, between March and July last year, fixed-term mortgage rates have been held down and at times dipped, as global interest rates declined, Mr Tuffley said.
Combined with bank competition pushing down some of the fixed rates on offer, it had been possible for borrowers to access fixed-term rates lower than when the Reserve Bank began raising rates last March, he said.
The Reserve Bank had concerns about financial stability, and the vulnerability of highly indebted households to unexpected loss of income and increasing interest rates.
With inflation pressures low, an OCR lift was not expected in the foreseeable future, but other tools could be used.
Mr Tuffley said that included extending the loan to value restrictions on banks, increasing the capital banks had to hold against large-scale investors, or having debt servicing limits in place.
He said the ratio of house prices compared to income, or affordability, varied from region to region.
Otago and Manawatu, at 3.9 annual pay packets to purchase a median priced house, are equal second most-affordable after Southland's 2.6.
Canterbury is 5, Auckland is 8.3 and the national average is 5.9.
