Home buyer confidence remains high as 68% believe price correction ahead
The results from the CoreLogic RP Data and Nine Rewards survey reveals increasing home buyer confidence in the housing market, according to Property Week.
The September quarter showed 66% of people surveyed thought it was a good time to buy property, even as home prices continue to rise in capital cities.
The results reflect a drop from the June quarter, where 71% said it was a good time to buy.
“Most respondents still felt as if it is a good time to buy property, although with the current growth period having run for so long, it isn’t a surprise to see a slight fall in the proportion of respondents who think now is a good time to buy,” said Cameron Kusher RP Data’s senior research analyst.
The survey showed varied results between states and even differences within states themselves.
State by state results on the percent of keen buyers.:
- Tasmania- 100%
- South Australia (outside of Adelaide)- 80%
- Queensland (outside of Brisbane)- 79.1%
- Western Australia (outside of Perth)- 75.9%
- Brisbane- 73%
- Perth- 69%
- Adelaide- 68.3%
- Victoria (outside of Melbourne)- 66.7%
- ACT- 65%
- Melbourne- 64.5%
- New South Wales (outside of Sydney)- 63.3%
- Northern Territory- 60%
- Sydney- 52.8%
Source: CoreLogic RP Data and Nine Rewards survey
The survey also asked if Australia’s housing market was vulnerable to a significant correction.
68% of people surveyed believed there may be a correction, the highest reading the survey has received.
Property prices continue to rise throughout Australia. Apart from Perth, price growth was experienced in all capitals in the September quarter.
The national figure shows 68% of people think the market is vulnerable to a significant price correction.
“Interestingly, respondents from areas where values have seen minimal growth over recent years were most inclined to think a significant correction was a possibility,” the report said.
Percent who think the housing market is vulnerable to a significant correction in values:
- South Australia (outside of Adelaide)- 85%
- New South Wales (outside of Sydney)- 74.4%
- Brisbane- $70.8%
- Tasmania- 70%
- Western Australia (outside of Perth)- 69%
- Sydney- 68.6%
- Melbourne- 67.3%
- Victoria (outside of Melbourne)- 65.1%
- ACT- 65%
- Queensland (outside of Brisbane)- 64.8%
- Perth- 62%
- Adelaide- 61.7%
- Northern Territory- 60%
Source: CoreLogic RP Data and Nine Rewards survey
