According to respondents of the CoreLogic RP Data Nine Rewards Consumer sentiment survey, less people believe now is a good time to buy property compared to 12 months ago, while more believe now is a good time to sell.
Of the survey’s respondents, 60% believe now is a good time to buy property, but while that is a majority of respondents it is down on the 71% of respondents who thought the same one year ago and the 80% from two years ago.
On the other hand, 65% of respondents thought it was a good time to sell; the highest reading in the history of the survey which extends back to the first quarter of 2013.
CoreLogic RP Data research director Tim Lawless said the change in perceptions came as no surprise.
“With the current growth period having run for so long it isn’t a surprise to see a fall in the proportion of respondents who think now is a good time to buy, particularly in the hottest market Sydney,” Lawless said.
“Sydney and regional New South Wales based respondents were the least optimistic about buying conditions which can probably be attributed to the high rates of capital that have been recorded over the past few years.”
89.3% of Sydney based respondents believed it is a good time to sell, while 69.8% Melbourne respondents and 68% of NSW respondents outside of Sydney answered that it was a good time to sell.
Tasmanian respondents were the most optimistic on buying, with 90% believing it is a good time to buy, followed by South Australian respondents outside of Adelaide (85%) and Brisbane respondents (78%).
The survey’s result has shown that plenty of Australians are still worried about the condition of Australia’s housing market, with 75% of respondents believing it is vulnerable to a significant correction in values.
This figure is up from 60% when the question was first asked in 2013, having risen progressively over time.
45% of respondents believe house prices will rise over the next 12 months, while 41% predicts they will remain stable and 14% are preparing for a fall.
“With attitudes around future capital growth broadly still strong, it is interesting to note that when respondents were asked whether Australia’s housing market was vulnerable to a significant correction, three quarters of respondents felt that it was,” Lawless said.
“This was the highest reading we’ve received for this question which suggests that despite a perception that prices will still rise, more Australians are becoming concerned about a correction in the housing market.
“Respondents based in regional Western Australia, the Northern Territory and Sydney were the most wary about the markets vulnerability, with 86%, 80% and 79% of respondents respectively indicating they were concerned values could fall significantly.”