According to the latest ME Bank report, real estate market prices have been steadily rising over the last few months, prompting a sense of optimism among Australians.
In the last quarter, 42% of Australians were positive about the real estate market, up nine percentage points from the previous quarter. On the other hand, the proportion of Australians who had a negative outlook on the housing market declined by two percentage points to settle at 24%.
"After a period of declining prices in major Australian real estate markets, steady increases in house prices over the last three months have created a much needed period of stability, providing more certainty than expected price increases "We were not just shocking the data," said Andrew Bartolo, general manager of housing loans at ME Bank.
Nearly half of Australians in the real estate market were expecting prices to rise over the next 12 months. This was reflected in all major cities and states, with the exception of Western Australia.
"With a relatively strong spring sales season and several months of home value growth, there is growing confidence that the upward price trajectory will continue, albeit modestly," said Bartolo.
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While investor interest declined slightly during the quarter, they remained the most likely to participate in the market. Two in three investors said they intend to sell or buy in the next 12 months. In terms of age group, the millennial generation has expressed the highest intentions to enter the housing market.
"In the last six months, we have noticed that people are taking a wait-and-see approach to the market.Although the increase in the number of transaction plans in the marketplace is modest, a more positive sentiment in the market suggests the recent interest rate: changes, real estate prices, auction liquidation rates, etc. have an impact, "Bartolo said.
On the other hand, the feeling of ownership among first – time homebuyers has not increased as much as others. This might suggest that recent movements in real estate prices would have already marked the end of an "opportunity to buy down."
"The recent rise in activity of first-time homebuyers, registered by ABS, could well represent a mad rush, while they can do so because of new pressures related to affordability as prices go up, "Bartolo said.
According to a recent CoreLogic study, the growth in housing loans to first-time homebuyers would likely be moderate as investor activity accelerates and house prices rise. increase.
"House prices rise again in most parts of the country, while household income growth remains slow, creating new housing pressures in markets where home values ​​are rising faster that revenue, "said Tim Lawless, Head of CoreLogic's Research Department.
With respect to the supply of real estate, half of Australians claimed that there was enough choice in the market. However, only one-third of first-time homebuyers believed the same thing when they were struggling to find affordable options.
"The supply of housing is lower than last spring and there is competition among those who buy now, so it is not surprising that only one out of two Australians think there is enough choice" said Bartolo.
Some concerns about the real estate market were also raised as part of the study, with some fearing to be forced to switch to interest-only repayments.
On the other hand, fewer and fewer Australians worried about a possible decline in property values.
"The decrease in concerns about declining property values ​​is probably related to the feeling of growing optimism about real estate prices," Bartolo said.
Top suburbs:
Willoughby East
,
spring wood
,
sth toowoomba
,
Queens Park
,
Homebush
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