Archive | Consumer confidence RSS feed for this section

Lower consumer confidence will dampen the housing market

The latest consumer sentiment data arrived yesterday from Westpac and the Melbourne Institute. The reading of consumer confidence fell for the fourth consecutive month and moved below the 100 mark where optimists and pessimists are equally balanced. With a reading of 99.5, the index is virtually at a neutral setting but more than 10 index [...]

Read full story Comments { 0 }

Results from the RP Data – Nine Rewards Survey of housing market sentiment

Is now a good time to buy a property or home? 74% of respondents believe now is a good time to be buying property. While the results show the vast majority of those surveyed think the timing to purchase a home is good, the results are a reduction from our May 2013 results where 80% [...]

Read full story Comments { 1 }

Strong housing market fuels dwelling construction

The Reserve Bank’s monetary policy settings are working.  Dwelling values are rising, as should be expected when mortgage rates are at historic lows.  But arguably what is more important is that the renewed level of housing market confidence is showing up in improved development activity and demand for new homes. This is exactly what the [...]

Read full story Comments { 1 }

Why aren’t dwelling values increasing at the same pace as the last growth cycle?

As the housing market recovery continues in a fairly sedate manner, I thought it would be interesting to compare some of the key housing market metrics that we follow to observe the differences in the current market recovery compared with market conditions back in 2009/10 which was the previous recovery/growth phase post GFC.  The analysis [...]

Read full story Comments { 4 }

Housing market sentiment remains high, but for how long.

RP Data, together with Nine Rewards, released an update to their housing market sentiment survey this week.  The headline findings showed that housing market sentiment was substantially higher than what it was six months ago, but virtually unchanged from earlier in the year. The survey was conducted across 1,030 respondents who were located across the [...]

Read full story Comments { 1 }

Consumers more optimistic about Australia’s housing markets in 2013

Consumers more optimistic about Australia’s housing markets in 2013 Last week Nine Rewards and RP Data undertook our second housing market sentiment survey.  The first survey was in October last year and we intend to run the survey every three months.  The results were stronger than I expected, in the sense that only a very [...]

Read full story Comments { 5 }

Confidence in Australia’s housing markets is gathering pace

The confidence level amongst Australian consumers (as measured by the Westpac-Melbourne Institute Consumer Sentiment Index) has been on an upwards trend since April this year, and over November the Index recorded a sharp rise to reach the highest level since April 2011.  An easy way to interpret the index is when the reading is over [...]

Read full story Comments { 2 }

Welcome back below average mortgage rates

With the low CPI reading earlier this week, a drop in the cash rate next Tuesday is pretty much a done deal.   The question is now will the RBA cut the cash rate by 25 or 50 basis points?  According to financial market expectations (based on the ASX cash rate futures yield curve), the cash rate [...]

Read full story Comments { 0 }

The pre-stamp duty surge

We’ve just updated our month to month models for transaction volumes and the results for Queensland are certainly interesting.  Most Queenslanders would be aware of the stamp duty changes that were brought in with the latest Budget announcement earlier in the year:  from the first of August owner occupiers would no longer benefit from stamp [...]

Read full story Comments { 7 }

What does the recent improvement in consumer confidence mean for the Australian housing market?

The relationship between consumer confidence and housing market activity is a topic that we often comment on in relation to the housing market.  The importance of a positive consumer mindset is simple; for a prospective buyer to make a high commitment purchase decision like buying a home they need to have a base line level [...]

Read full story Comments { 3 }