Two-thirds of Aussies see bright future for property prices
Negative signals from the property market have done little to dampen the Aussie love affair with bricks and mortar.
A new Mortgage Choice survey has found more than two-thirds of Australians are confident in the property market. 64.3% of the survey’s respondents said they expected the Australian housing market to perform the same if not better than it has in recent years.
“This data makes it obvious that the majority of Australians remain upbeat about investing in property and will continue to buy and sell dwellings,” Mortgage Choice chief executive John Flavell said.
Flavell pointed to recent CoreLogic data showing a slowdown for the housing market. The data revealed property prices grew just 0.4% across the combined capital cities for the three months to November.
“As a result, many market commentators have started to panic and are suggesting this is the beginning of the end,” Flavell said. “Some commentators have even gone so far as to suggest we could soon see a property price crash across some of the bigger markets, notably Sydney and Melbourne.”
But Flavell rubbished this notion, saying prices were merely stabilising after years of “runaway growth”.
“Supply and demand are working in good kilter with one another. At the same time, interest rates are low and we expect them to stay lower for longer. Meanwhile, the unemployment rate is trending downwards, with the latest data from the ABS showing that the unemployment rate fell 0.1% throughout September to 5.5%,” Flavell said.
“When you consider all of the above economic data, there is nothing to suggest that a property price crash is in our near future.”