Latest Housing Market Sentiment Survey by CoreLogic and TEG Rewards reports that Australian’s share mixed views on housing market.
The latest quarterly housing market sentiment survey by CoreLogic and TEG rewards revealed that almost two thirds of Australian’s think now is a good time to be purchasing residential property while roughly the same proportion believed the housing market is vulnerable to a significant correction.
According to CoreLogic research head Tim Lawless, the latest CoreLogic and TEG Rewards Housing Market Sentiment Survey highlights the paradox in housing market attitudes, with the large majority of survey respondents indicating that it’s a good time to buy a home at a time when the market may be vulnerable to a significant downturn.
Of the 2,432 Australian residents who participated in the June quarter CoreLogic TEG Rewards Housing Market Sentiment Survey, 64% of respondents thought it was a good time to buy a dwelling, up from 60% of respondents a year ago.
Sydney-based respondents, where affordability constraints are the most pressing of any capital city, were the most 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.
Conversely, the regions where dwelling values have peaked and shown a downturn are where respondents are most confident about buying conditions. 80% or more of respondents in the Northern Territory, Regional Western Australia and Perth indicated they thought it was a good time to buy.
Mr Lawless said, “With such as a large proportion of survey respondents thinking that now is a good time to buy a dwelling, it was surprising to see almost two thirds (65%) also indicated they thought dwelling values could suffer a significant correction. While the results suggest that survey respondents are concerned there could be a substantial fall in Australian home values, the proportion is lower from a year ago when 75% of respondents thought the market was vulnerable to a significant correction in values.”
When asked whether dwelling values would rise, fall or remain steady over the next twelve months, the majority of respondents expected values to remain steady, with Tasmanians the most optimistic about the direction of value growth over the next twelve months.
Nationally, 38% of respondents are expecting dwelling values to rise over the next twelve months. In contrast, a year ago 45% of respondents thought values would rise, indicating that respondents have become less optimistic with regards to their views on capital gains over the next financial year.
For rental market conditions, only 11% of survey respondents are expecting weekly rents to fall over the next twelve months, despite the CoreLogic rental series showing the weakest rental conditions in at least two decades.
Nationally, almost equal numbers of survey respondents indicated that weekly rents would either rise or remain stable over the coming twelve months, however there were some considerable variations across the regions.
Less than one fifth of respondents in Perth and Regional Western Australia think weekly rents will rise. Mr Lawless said, “The low expectation of rental rises in these areas is in line with current rental statistics which show ongoing falls in weekly rents across most parts of Western Australia.”
Click here to download the complete report.
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. © 2015 RP Data Ltd.