Growth holding up but subdued year ahead
New research reveals how Australians are weighing up the housing market.
With Australian house prices continuing to moderate after 5 years of solid growth (particularly in Sydney & Melbourne), home owners, investors, buyers and sellers are facing a very different property market today. In this report we explore how Australians are weighing up the new opportunities and challenges this market presents. Over 2,000 consumers were asked whether they thought it was a good time to buy, sell, renovate or take out a mortgage, now and in 12 months’ time. We also asked if they’re actually intending to buy, sell, renovate or get a mortgage over the next 12 months and whether they believe house prices in their local area would rise or fall.
Most consumers think now is a good time to renovate their home or buy to live in. But, with prices falling across most of the country, they don’t think it’s a good time to sell their home or investment property. Over the next 12 months Australians are still most positive about renovating their home and buying a property to live in, but there is a lot of uncertainty. So what do consumers actually intend to do over the next 12 months? Overwhelmingly, the majority of Australians plan to sit tight and do nothing. On average, price falls of -2.1% are expected over the next 12 months (against -2.4% forecast by property professionals in NAB’s latest Residential Property Survey). TAS is by far the most positive state, with almost 1 in 2 people expecting a positive price outcome, followed by QLD (1 in 3). Only 1 in 5 consumers in NSW & VIC expect house prices to grow next year. Much larger falls are expected in capital cities than regional and rural areas, with modest growth expected in the bush.
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