The Bank of Korea's recent consumer trend survey shows a significant decline in consumer expectations for rising house prices in February, with the housing price outlook consumer trend index (CSI) dropping from 124 in January to 108. This index is crucial as it indicates a positive outlook when above 100, reflecting that more households expect house prices to rise in the next year rather than fall. The decline in February suggests that while there are still many households anticipating price increases, their proportion has notably diminished compared to January. The long-term average of this index, established from July 2008 to 2025, is 107, indicating a shifting sentiment among consumers. The Bank of Korea has attributed this change in expectations mainly to government policies, including the imminent end of the multi-homeowners' capital gains tax exemption and recent real estate measures aimed at supplying 1.35 million housing units over the next five years in the metropolitan area, which have contributed to expectations of a decline in housing prices.

Furthermore, consumers forecast a 2.6% increase in prices over the next year, reflecting a persistent concern about inflation despite a overall decline in consumer price growth. Essential goods, such as processed foods and seafood, continue to see steep price increases, leading to a stable inflation forecast. The survey also shows minor increases in expectations around interest rates and future living conditions, suggesting a cautious yet shifting optimism regarding economic conditions ahead. Though the consumer sentiment index, which aggregates assessments of household finances and economic outlook, rose from 108 to 112.1, it remains below the peak observed in November of the previous year. This nuanced view of consumer expectations reflects broader economic concerns amidst changing government policies and market conditions.