Housing market confidence fell in September: Westpac's Red Book
Michael CrawfordDecember 7, 2020
Housing market confidence fell in September nationally with New South Wales being the region to fall hardest where price expectations were previously strong, according to the Westpac Melbourne Institute House Price Expectations Index for September.
The Westpac Melbourne Institute House Price Expectations Index fell 6.1% to 127.3 in September – down 17% year on year.
Housing market confidence time to buy category fell 0.9% - down 8.6% year on year and 30% below the Sep 2013 peak.
The report said buyer sentiment fell hard in NSW, with the state index down 14% in Sep, 34% on a year ago and 55% over the last 2yrs.
"The NSW index is at its lowest level since Jun 1989 and the more specific Sydney index is at an all time low going back to 1975. This veritable collapse in buyer sentiment is a clear warning that owner occupier demand is set to fall. Disaffected buyers may also be starting to consider inter-state migration as an option," the report noted.
"The mood is very different across other markets. Readings have shown a less pronounced fall in Vic and remain relatively positive in Qld and WA. The latter is a little surprising given the stress the WA economy is currently coming under and price declines in Perth’s housing market. That said, the index tends to reflect buyers’ affordability assessments rather than expectations for price growth."
"The age-group breakdown shows much weaker ‘time to buy’ reads for consumers in key first home buyer (FHB) age groups, and notably firmer readings for those that own their home without a mortgage."
‘Time to buy a dwelling ’ by state, buyer group
Michael Crawford
Michael is the real estate reporter for western Sydney and loves writing about homes and the people who live in them. A former production editor and news journalist, he enjoys writing about real-world property purchases as well as aspirational buys and builds. Following a recent move from Sydney’s northern beaches, Michael now actually enjoys commuting.