07 Jul 2014

RP Data - Nine Rewards: Consumer housing market sentiment survey

Survey reveals most prospective home buyers have not been deterred by the federal budget.

A housing market sentiment survey conducted by RP Data & Nine Rewards in June saw 1,021 respondents comment on what they expected. As a result of federal budget announcements in May earlier this year, RP Data research director Tim Lawless said there has been speculation in the property market that home buyers may put off purchasing a home due to higher living costs and less certainty in household balance sheets.

However, today’s survey results refute such speculation and show that 64 per cent of survey respondents felt that their willingness to purchase a principal place of residence was unaffected by the budget, while 4 per cent indicated they would be more willing to buy a home.

Investors indicated slightly less willingness to participate in the housing market post budget announcement with 39 per cent of survey respondents indicating that they would be less willing to purchase an investment property based on the latest budget release; 55 per cent felt that their property investment decisions would be unaffected by the budget release.

RP Data research director Tim Lawless said, "If the government budget announcements made around property had of included changes to negative gearing, investor pessimism would probably have been substantially higher in the survey."

On the whole, the survey revealed that a majority of recipients were concerned about the possibility of a housing market correction across Australia’s housing markets. Sixty three per cent of individuals indicated that they thought Australia’s housing market is vulnerable to a significant correction in values with the largest proportion of respondents concerned about a material decline in dwelling values located within the mining-intensive areas of regional WA and Qld, as well as the national capital where local labour market conditions have deteriorated.

Despite the large proportion of survey respondents who thought housing values could experience a significant downturn, 71 per cent of respondents still think now is a good time to be buying a dwelling (up from 68% over the March quarter). In particular, Tasmanians are the most confident about buying conditions with 90 per cent of survey respondents indicating they thought now was a good time to be buying.

Conversely, roughly half of the survey respondents thought the current housing market conditions represented a good time to sell with 69 per cent of Sydney survey recipients believing that now was the most conducive time for selling a home. On the other hand, residents in Tasmania and the ACT were the most pessimistic about local selling conditions.

When surveyed about the prospects for capital gains across the housing market over the coming year, 43 per cent expected further capital gains. When asked whether we will see a further rise in dwelling values over the coming 12 months, most have relatively modest growth expectations; 84 per cent were expecting a capital gain of less than 5 per cent over the coming year, while a similar result was recorded for those respondents who thought dwelling values would fall. Eighty five per cent were expecting the decline to be less than 5 per cent over the year.

Additional findings from the latest survey showed that most respondents were expecting mortgage rates to remain on hold over the next half year, while 58 per cent expected rates to rise over the next 12 months.

Looking at rental market expectations, 56 per cent of survey respondents are expecting rents to rise over the coming year, with three quarters of these individuals anticipating a rise of less than 5 per cent over the next 12 months.

The latest survey of housing market sentiment from RP Data and Nine Rewards comes at a time when capital gains across the housing markets appear to be tapering back to more sustainable levels. The trend rate of growth peaked late last year and the most recent June quarter showed growth in dwelling values had flattened out, registering a 0.2 per cent fall over the quarter.


Media enquiries contact:
Mitch Koper, RP Data National Media & Communications Manager 1300 734 318 or mitch.koper@rpdata.com

About RP Data
RP Data is the number one provider of property information, analytics and risk management services in Australia and New Zealand, 100 per cent owned by CoreLogic CLX– the world’s largest data and analytics provider. www.rpdata.com.

About Nine Rewards
Nine Rewards part of the Nine Entertainment Co., manages online panels with over 1.4million in Australia and 80k in New Zealand. Nine Rewards connects businesses with their audience for market research, marketing and lead generation purposes. www.ninerewards.com.

About CoreLogic

CoreLogic Australia is a wholly owned subsidiary of CoreLogic (NYSE: CLGX), which is the largest property data and analytics company in the world. CoreLogic provides property information, analytics and services across Australia, New Zealand and Asia, and recently expanded its service offering through the purchase of project activity and building cost information provider Cordell. With Australia’s most comprehensive property databases, the company’s combined data offering is derived from public, contributory and proprietary sources and includes over 4.4 billion decision points spanning over three decades of collection, providing detailed coverage of property and other encumbrances such as tenancy, location, hazard risk and related performance information.

With over 20,000 customers and 150,000 end users, CoreLogic is the leading provider of property data, analytics and related services to consumers, investors, real estate, mortgage, finance, banking, building services, insurance, developers, wealth management and government. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and geo spatial services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. CoreLogic employs over 650 people across Australia and in New Zealand. For more information call 1300 734 318 or visit www.corelogic.com.au.

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