Housing affordability reaches 13-month high: Finder RBA Survey

Housing affordability reaches 13-month high: Finder RBA Survey
Housing affordability reaches 13-month high: Finder RBA Survey

The decline in house prices over the last year and a half has seen positive sentiment for housing affordability reach a 13 month high, according to Finder's RBA Survey.

REA Group chief economist Nerida Conisbee said that due to positive sentiment trending upward for employment and stronger numbers reported in March a rate cut won't happen this month, but it's coming.

"While the likelihood of a cut is increasing, this month is still too early," Conisbee said.

“If economic data continues to deteriorate, then we will likely see movement in the second half of the year," Conisbee said. 

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Housing affordability reaches 13-month high: Finder RBA Survey

This feeling is shared by many on the panel with nearly all (35/36) experts and economists forecasting the cash rate to be held at 1.50% on Tuesday (2 April 2019) for the 29th consecutive meeting.

Economist Stephen Koukoulas from Market Economics had predicted a cut today.

"The economy has slowed, with the per capita GDP recession in the second half of last year probably continuing into 2019. 

“Inflation is low and with the household sector under pressure from falling house prices, some policy stimulus is needed," Koukoulas said.

Seventy-six per cent of those surveyed expect the next rate change, whenever it does happen, to be a decrease. This belief is consistent with the 75% who held this prediction last month.

 

 

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Housing Sentiment Finder.com.au

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