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A report released just this morning has shown that consumer expectations for the trajectory of housing prices are split nearly evenly across the board, with 32% expecting them to rise, 28% preparing for a fall, and 29% believing they will remain the same.
However, a commanding 88% of Australians agree that affordability is a significant issue, even after the prolonged period of housing prices having dropped.
ME’s Quarterly Property Sentiment Report revealed that younger people, investors, and those looking to buy feel much more positive than older people, first home buyers, owner occupiers, and those with no interest in buying anytime soon.
Of those surveyed, 59% were actually glad that dwelling values are continuing to fall.
According to Andrew Bartolo, ME GM of home loans, “Positivity among investors and younger groups suggested some people were seeing price falls as an opportunity to buy.”
However, he noted, “People often forget house prices doubled in recent years, so falls of 10%-15% won’t do much to improve affordability over the long-term.”
Not all participants were quite so keen on the downward trend persisting in the market, given that 62% expressed concern about the value of their own property falling.
Tighter credit policies were also named high on the list of worries, with nearly 70% of those surveyed indicating concern over the issue.
However, despite the many anxieties, the report revealed net optimism in the sentiment surrounding the market – with 35% feeling positive about the future of the property market, 37% neutral and just 28% communicating overt negativity.
“Enduring positivity about price expectations is possibly linked to Australian’s long-held belief that property prices will always go up,” concluded Bartolo.
