The recent upward shift in housing market sentiment is a positive sign for the national housing market.
The RP data-Nine Rewards’ Consumer Housing Market Sentiment Survey for May 2013, showed that 80 per cent of respondents believe that now is a good time to buy a home and 41 per cent expected dwelling values to increase over the next six months. ‘
Both measures represent a considerable improvement in the views of consumers from the October 2012 survey.
‘It is not suprising that housing market sentiment has increased when on considers the lending environment and steady house price growth that we saw over the first quarter of this year.’ RP data Chairman stated.
Capital city dwelling values rose 2.9 per cent in the year, auction clearance rates are currently robust in Sydney and interest rates are at a 50 year low.
These factors, in combination, have likely had a positive impact on consumer sentiment and should further encourage new buyer activity and inquiry over the coming months.
The statistics preceded housing finance figures from the Australian Bureau of Statistics, which showed that the number of home loan approvals increased by a seasonally-adjusted 0.8 per cent in April, with the number of new home loans approved rising 3.5 per cent to a three-and-a-half year high.
While it appears that many people are still preferring to pay down debt rather than take on additional loans, the recently reported increases in housing finance- particularly for investors and new homes – strengthens the view that consumers confidence may be returning to the property market.
Source: Auburn Review