According to research in the latest ME Quarterly Property Sentiment Report confidence has returned to the property market. A 1000-investor national poll conducted this quarter. At the beginning of October, owners-occupier and first-time homebuyers found that optimism has improved over the past three months, fueled by price growth across major markets and signs that banks have been lending again.
Almost half (42%) of Australians were feeling more enthusiastic about the property market – up by 9% compared to the previous quarter. Property investors‘ sentiment risen by 11% from the previous quarter of 40 percent up to 51 percent. The same goes as well for the owner-occupier from 35 percent to 46 percent.
Overall, more people are predicting house prices to rise over the next 12 months; however, expectations vary based on property status and location. Investors’ overall financial confidence by property status almost doubled from 22 percent from the last quarter to the current 41 percent.
The findings are consistent with recent ABS data showing that demand for home loans has risen for the third month in a row; the number of home loans to owner-occupants has increased in each of July, August, and September.
The number of home loans approved in September represented a 3.6 percent increase over the previous month, according to the ABS. Although sentiment has improved across all age groups, the status of property and purchasing intention has been the most positive for buyers and millennials and for those who plan to buy in the next 12 months.