After what can only be described as a terrible year for consumer sentiment in general and housing confidence in particular, two key indicators of housing confidence bounced back this month. According to Westpac bank’s consumer survey, “house price expectations” and “time to buy a house” indices rebounded strongly in October, perhaps indicating that the coming months will see a surge in buyer demand for housing.
The “House Price Expectations” index grew by a colossal 31.5% while the “time to buy a dwelling index rose to its highest level since September 2019. These survey speaks volumes about the underlying strength of the housing market in the face of severe headwinds. Remarkably the “house price expectations index rose by double digits in all states, including Victoria which has borne the brunt of the Coronavirus pandemic. The strongest rises in sentiment have been in the smaller states.
The strength of consumer sentiment has been surprising bu is borne out by
major banks moving to revise their pessimistic outlooks,,an easing in monthly price falls and remarkably strong auction clearance rates in line with strong buyer demand.
With prices still lower than what they were twelve months ago, record low interest rates. Government support still available and a market that has remained extraordinarily resilient, now might be the time to review your housing options. If you would like assistance in financing a new home purchase or refinancing an existing loan, give the team a call at Australian Finance Hub.