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Aussies on the fence as housing sentiment shifts
A number of political and economic factors have triggered a spike in Australia’s property price sentiment despite few people being willing to make a move in the market, according to new research.
Aussies on the fence as housing sentiment shifts
A number of political and economic factors have triggered a spike in Australia’s property price sentiment despite few people being willing to make a move in the market, according to new research.
ME’s latest Quarterly Property Sentiment Report found that Australians are increasingly optimistic about housing prices over the next 12 months, with less than one in five survey participants expecting house prices to fall .
Across all major cities, there appeared to be a more positive outlook on prices, with significantly more people in NSW, Victoria, Queensland predicting prices to go up, and noticeably more people in the Northern Territory, Tasmania, NSW and Victoria predicting prices to at least remain the same.
ME’s group executive of customer banking, Craig Ralston, said the research showed that “Australians in the property market have become more optimistic about house prices, perhaps reflecting a number of changes in the external environment since the last survey”.
Worries ease, but affordability and credit tightening remain
According to the report, housing affordability remains the top concern for Australians, with 93 per cent of people agreeing that despite falling prices in some areas, housing affordability is a big issue in Australia.
“House prices remain high by historical and international standards; hence, perceived worries about affordability may take time to shift,” Mr Ralston said.
Despite this concern, Australians surveyed in the report indicated less worry around the tightening of credit policies, negative equity, being forced to switch to interest-only repayments, and current property values.
The report found that more people are sitting on the fence when it comes to transacting property less are intending to buy (down 3 percentage points), less are intending to sell (down 1 percentage point) and more people intend to do neither (up 5 percentage points).
Overall, property sentiment remains stable
The report does show a polarised property environment, with 41 per cent having indicated that they feel neutral about the property market.
A slightly lower number noted that they feel positive about the property market, at 33 per cent, but just one in four shared negative feelings towards the marketplace (26 per cent).
Despite an overall drop in property sentiment on previous figures, the outlook remains stable, according to the report, thanks to a net positive position.
Mr Ralston said the drop in positive investor sentiment is still surprising “considering [that] negative gearing now seems to be off the table and APRA has proposed changes to home loan serviceability”.
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