More than two thirds of Australians feel that now is the ‘right time’ to buy property says RP Data. This comes after the company’s latest ‘housing market sentiment’ survey was conducted.
The latest sentiment survey conducted by RP Data had 1030 participants. Of this number, 68 percent said they thought now was a good time to buy a property.
Strong positive feel towards the housing market
However, while these results suggest that Australians have a strong positive feel towards the housing market, this result was less positive than sentiment shared 12-months ago. The survey conducted by RP Data last year revealed that 80 percent of Australian’s felt that it was the right time to buy. Experts suggest that the 12 percent drop in positive sentiment towards home buying may be attributed to ‘seller market’ conditions, where supply is less than demand and this is pushing-up home prices.
Optimism is higher in some regions
Optimistic survey responses were recorded in areas where property prices have shown marginal rises over the price growth cycle. Responses in areas such as Sydney and Melbourne were less optimistic. But, this is to be expected as these areas have shown substantial growth over the latest growth cycle.
Home price rises
Slightly more than half (51 percent) of survey respondents said they expect home prices to rise over the next six months. Whereas only 6 percent of respondents expect values to fall.
RP Data national research director, Tim Lawless, said that most Australians appear to have a positive perception of property values and have realistic expectations of property price growth.
Some 66 percent of survey respondents said that they were concerned that the sustainability of Australian dwelling values would not be able to be maintained and that the market was vulnerable to significant correction.
Lawless suggests that it is clear that the ongoing debate over the housing bubble is still an issue that continues to put a dampener on housing market sentiment. This is particularly so in markets such as Sydney and Melbourne.
In relation to the ‘must haves’ for home buying, survey respondents felt that personal financial positioning was the most important factor to consider when buying a home. Other important factors included the capital growth of property, the interest rate setting and job security.
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Written by eChoice