According to new research, consistent house price increases are boosting confidence in the domestic housing market. ME’s Third Quarterly Property Sentiment Report found that 42% of Australians feel positive about it on the property market (up 9 percentage points) and only 24% feel negative (down 2 percentage points).
The study noted the least optimistic of first-home buyers. The report found that, after a period of sitting on the fence, more Australians were willing to return to the property market, with more intention to buy (up 2 percentage points); more intention to sell (up 4 percentage points); and less intention to do neither (down 4 percentage points).
Home price expectations have soared over the next 12 months, with now nearly half of Australians on the real estate market (47%) expecting prices to rise (up from 32% in April, 38% in July), only 13% expecting prices to fall (up from 28% in April, 17% in July), and 30% expecting them to remain the same.
ME asked people in the property market what their property plans are over the next 12 months; compared to the rest of the year, overall, more people are now keen to transact in the market. Property investors, on the other hand, prefer to either buy nor sell, up to 48% from 39% in the Second Quarter.
Respondents in all major cities, with the exception of Western Australia, have a positive price outlook. Prices are expected to continue to rise in the three largest capital cities, with 57 percent of respondents predicting positive movements in prices. This positive feeling is about 10 points higher than the country’s overall sentiment.