Whilst there has been quite a bit of talk about a change in property market sentiment in recent months, it was interesting to read the latest Quarterly Property Sentiment Report produced by ME Bank.
This report is based on a survey of 1000 Australian residents and was conducted at the start of this month (July 2019). The timing was particularly interesting as the previous quarterly survey was conducted in April 2109, before the property market felt the effects of the Federal election result, two cuts to official interest rates by the Reserve Bank and APRA’s moves to ease restrictions on mortgage lending.
The July report showed a clear change in market sentiment in the last three months. Based on the ME Bank survey, Australians are becoming more optimistic about property prices, with 38 per cent expecting prices to rise over the next 12 months. This compares with 32 per cent just three months prior. The survey also found that 17 per cent of Australian expect property prices to fall further, which is well down on the 28 per cent recorded in April.
Not surprisingly, the market sentiment among residents of major cities tended to be more positive than those in rural areas. On a state-by-state basis, the residents of New South wales, Victoria and Queensland were more likely to predict rising property prices.
Another interesting statistic was that the people most likely to be happy about the recent reset in property prices were first home buyers, as lower prices clearly make it easier for people to get their foot in the door of the property market.
This change is market sentiment is certainly good news for anyone planning on making a move in 2109. If you would like some experienced advice or assistance to make the most of the current market conditions, the team at Ian Reid Vendor Advocates are always happy to help. Feel free to give us a call on 1300 400 400, and be sure to get your free copy of our booklet “Fatal Real Estate Traps Exposed”, while you’re here.