With so many different market analysts making forecasts about what the property market is likely to do in 2017, we thought it would be timely to take a look at what the average Australian home buyer is forecasting. That’s why the recent release of some data from the Westpac Melbourne Institute makes interesting reading.
The Westpac Melbourne Institute is a respected economic and social researcher which publishes, among a variety of different economic reports, a regular measure of consumer sentiment across Australia. So, it was interesting to read that their most recent ‘Consumer House Price Expectations Index’ showed that consumer sentiment had firmed further in January, rising a further 7.5% since October. On a scale where 100 is an indication of balance between positive and negative sentiment, the January index of 149.6 showed that consumer sentiment is getting close to the highs of early 2015.
The report found that a large majority of consumers in Australia expect property prices to rise over the next 12 months. In fact, 13.2% predicted double digit growth and 49.7% forecast single digit growth. That’s a total of 62.9% expecting house prices to rise, whilst 26.2% are expecting prices to remain stable and just 10.9% are expecting a price drop.
Not surprisingly, consumers in Victoria and NSW were the most confident of further property price growth.
If you’re considering selling in 2017, it is important to remember that there is a difference between general trends in the market and changes in the value of your own specific property. So, if you would like some information on the best way to obtain a valuation, you can call our team at Vendor Advocacy Australia at any time for assistance on 9430 0000. For more helpful tips on how to avoid making expensive mistakes when you put your property on the market, you find lots of helpful advice in our free booklet, “Fatal Real Estate Traps Exposed”.