PHOTO: Two very distinct market opinions have formed. Source: Supplied
Australia’s real estate market is powering up as we shift along the path out of lockdown. But an unusual trend has emerged that’s cracking the market in two.
Despite Australia not being out of the pandemic woods just yet, Australians are optimistic about the property market.
According to ME’s latest Quarterly Property Sentiment Report, Australians feel that the property market is on the mend. Conducted last month, the report showed that 38 per cent of people surveyed felt “positive” about the national housing market — a result sitting just 4 percentage points below the same report for October 2019, and a clear improvement on the 29 per cent positive sentiment in April 2020.
When comparing sentiment between the start of the pandemic to now, less Australians are worried about the value of their property falling. By October, 49 per cent had concerns for their property value while in April, 64 per cent were worried.
The largest uptick in the report came from NSW metro residents, with 29 per cent of Sydneysiders feeling positive about the market in April, to 42 per cent by October.
Andrew Bartolo, ME’s head of home loans, said signs of optimism have grown throughout spring.
“This is really promising and indicates that despite volatility in the market, Australians have a resilient mindset when it comes to property,” he said.
The proof is in the numbers
In the latest ABS housing finance data, the volume of funds lent for the purchase of buying a home demonstrated that Australians were feeling pretty positive about property.
Volume increased by 5.9 per cent in September alone, taking the quarterly increase to 20 per cent – the highest quarterly growth rate on record. That change followed an understandable 10.9 per cent contraction in housing finance for the June quarter, when strict social distancing restrictions were in place.
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