NSW house price expectations down 17%: Westpac's Red Book
House price expectations fell in September according to the Westpac- Melbourne Institute Consumer House Price Expectations Index, which also found an annual growth in dwelling prices at just under 10% nationally.
The Westpac- Melbourne Institute Consumer House Price Expectations Index fell 6.1% from 132.7 in Aug to 127.3 in September.
According to the report the September fall was felt greatest in NSW, down 17%.
"Composite price measures based on all available private sector indexes shows annual growth in dwelling prices tracking at just under 10% nationally but varying enormously across geographies. Price growth is running closer to 20% in the Sydney market, showing a stark disconnect with the recent weakening in consumers’ price expectations," the report noted.
"While still more positive than buyer intentions, consumers’ house price expectations are also showing signs of waning. The Index is now down 17%yr although it remains well above the 100 level indicating those expecting prices to rise still outnumber those expecting them to fall.
"Price growth is a reasonably firm 9%yr in Melbourne, but is only really keeping pace with inflation in Brisbane (2.6%yr) and is recording outright declines in Perth (–2.5%yr). With 75% of WA consumers picking prices to be flat or lower in 12mths, weakness looks entrenched."
Westpac-MI House Price Expectations Index
House prices: expectations vs actual by state
