Australian buyers remain enduringly positive about the residential housing market, despite the current downturn surpassing the previous nine, with price expectations over the next 12 months set to remain “net positive”.
ME Bank’s new quarterly property sentiment survey, conducted prior to the federal election, reveals that 35 per cent of respondents are positive about the property market, 37 per cent remain “neutral”, and 28 per cent negative.
“Positivity among investors and younger groups suggested some people were seeing price falls as an opportunity to buy,” ME’s home loans general manager Andrew Bartolo said.
“[And] negativity was lower than might have been expected for a market that’s fallen dramatically in Australia’s key property markets over the last 12 months.”
Bartolo says the standout finding from the survey is that 88 per cent of Australians are concerned with housing affordability.
“People often forget house prices doubled in recent years, so falls of 10 per cent to 15 per cent won’t do much to improve affordability over the long-term.”
Tighter credit policies and reporting requirements followed, with 68 per cent expressing concerns over the issue — but that may change “given the recent APRA announcement on serviceability” Bartolo said.