Westpac’s monthly consumer sentiment survey reveals most Australians believe now is the best time to buy a house, despite thinking house prices will fall further still.
he bank’s monthly consumer sentiment survey reported an 11.8 per cent surge in respondents thinking now is the right time to buy a house – 17 per cent higher than a year ago.
New South Wales residents are leading the charge, increasingly keen to take advantage of falling prices. The state’s ‘time to buy a dwelling’ index surged by 26 per cent – a figure that hasn’t been seen in five years.
Westpac chief economist Bill Evans says this suggests the decline in Sydney house prices is “starting to generate some interest from buyers”
The results of the survey come after a sharp slide in national house prices, which have now fallen 3.5 per cent, according to CoreLogic data.
CoreLogic’s Head of Research, Tim Lawless says this signals the weakest macro-housing market conditions since February 2012.
“With such broad-based weakness in housing market conditions, it’s clear that tighter credit availability is acting as a drag on housing demand and impacting adversely on the performance of housing values across most areas of the country,” Mr Lawless told WILLIAMS MEDIA.
According to the Westpac survey, consumers are expecting house prices to fall even further, with expectations of house prices declining by 2.3 per cent to equal the weakest level seen on the index.
“The house price corrections underway in Sydney and Melbourne now look to be firmly embedded in consumer expectations,” Mr Evans said.