Australians share mixed views on housing market

CoreLogic-TEG Rewards latest consumer housing market sentiment survey results announced.

The latest housing sentiment survey by CoreLogic & TEG Rewards concluded that almost 70% of Australians  think now is a good time to be buying a dwelling,  despite dwelling values moving out of reach for many as the housing market broadly approaches four and half years of growth.

Comprising of 2,442 respondents, the survey showed that in Sydney, where affordability constraints are the most pressing of any capital city, a majority of respondents were pessimistic about whether now is a good time to buy a property, however slightly more than half the respondents still felt it was a good time to buy a property.

Conversely, in the regions where dwelling values have peaked and entered a downturn are where respondents are most confident about buying conditions; at least 80%  of respondents in the Northern Territory and Perth indicated they thought it was a good time to buy.

CoreLogic Head of Research Tim Lawless said, “Perceptions around selling a home have weakened over the past twelve months which is likely attributable to slower housing market conditions across many markets.  CoreLogic data shows that transaction numbers have been moderating across most capital cities however auction clearance rates are close to record highs and newly advertised listing numbers are tracking lower than a year ago nationally.”

Unsurprisingly, the survey revealed that Sydney and Melbourne residents were more optimistic about selling conditions with almost three quarters of respondents indicating they thought it was a good time to sell in Sydney, while 70% of Melbourne respondents thought it was a good time to sell.  Based on CoreLogic data, Sydney and Melbourne continue to see auction clearance rates track around the 80% mark while private treaty sales are generally selling with minimal discounting.

The weaker performing housing markets are also showing the most pessimistic survey responses around whether now is a good time to sell.  Only 20% of respondents in Perth and the Northern Territory thought it was a good time to sell, highlighting the weaker housing market conditions and high stock levels that have been evident in these areas since 2014.

Perhaps somewhat counterintuitively, 67% of respondents indicated that they thought the Australian housing market was vulnerable to a significant correction in dwelling values.  Mr Lawless said, “The divergent results highlight the importance many Australian’s place on home ownership and /or the investment potential of housing.” 

A large proportion of respondents who were concerned about a significant fall in dwelling values were based in areas where home values have already moved lower; 90% of respondents from the Northern Territory thought that the market was vulnerable to a significant correction, while more than 70% of regional SA, regional Vic and Perth based respondents were also concerned about the possibility of a significant correction.

The CoreLogic-TEG Rewards housing market sentiment survey also explored views on which direction dwelling values and rental rates were likely to head over the next twelve months.  The majority of survey respondents are expecting dwelling values to remain steady over the next twelve months, with Tasmanians the most optimistic about the direction of value growth over the next twelve months.

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DISCLAIMER

In compiling this publication, CoreLogic has relied upon information supplied by a number of external sources and CoreLogic  does not warrant its accuracy or completeness. To the full extent allowed by law CoreLogic excludes all liability for any loss or damage suffered by any person or body corporate arising from or in connection with the supply or use of any part of the information in this publication.  CoreLogic recommends that individuals undertake their own research and seek independent financial advice before making any decisions.  © 2016



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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