The number of Aussies expecting housing price growth increased, according to ME Bank’s June Property Sentiment Report.
Thirty-eight percent of Australians believed property values would increase in the next 12 months, rising from just 32% in the March quarter.
Buyers’ improved sentiment was unsurprising given the central bank’s latest rate cuts, changes in mortgage lending rules, and the certainty over negative gearing options since the federal election, according to Craig Ralston, ME Bank group executive for customer banking.
Rising auction clearance rates also helped the positive views on housing values, Ralston said.
“Positivity among sellers and owner-occupiers suggests these groups see the recent market trends as a sign their homes are retaining or regaining value again,” he said.
While overall sentiment in the country was improving, some states still experienced negative outlooks on property values, the survey results showed.
In NSW, 41% thought prices would continue to fall across the state, with only 26% believing that prices would grow in the next 12 months.
In Victoria, 36% believed prices would drop, with one-third expecting values to jump.
In WA, 26% said prices would decline, with 21% believing they would increase.
Results were a little more positive in other states, the survey said.
In Queensland, 36% believed prices would rise; half of Tasmanians thought values would increase over the next 12 months, according to the survey.
Despite the improved positive outlook on values, housing affordability remained a pressing concern. Almost 93% of the Aussies surveyed believed housing affordability as an issue.
“House prices remain high by historical and international standards, hence perceived worries about affordability may take time to shift,” Ralston said.
