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Australians' confidence towards homebuying remained elevated in May, according to the latest Commonwealth Bank Household Spending Intentions (HSI) series report.
The report showed that home buying intentions rose in May 2021, reflected in the increase in mortgage applications and Google searches and the gains in residential property prices.
“The high reading is no surprise given the strength in the housing market. The high reading is no surprise given the strength in the housing market," said Belinda Allen, senior economist at CBA.
CBA forecasts dwelling prices to increase by 14% over 2021 and 2022.
"We continue to expect the housing market to be a key source of support for the economy in 2021," Allen said.
Spending intentions for health and fitness, education, and motor vehicles also increased over the month. Meanwhile, spending intentions remained steady for travel and entertainment. Only the retail segment posted a slump in spending intentions over the month.
"Together with the strong labour market and positive wealth effects from rising dwelling prices, we expect consumer spending to support Australia’s economic growth in 2021,” Allen said.
