Time to buy property sentiment is down: Westpac

Confidence around housing remains weak, according to the Westpac-Melbourne Institute Index of Consumer Sentiment in October.

The ‘time to buy a dwelling’ index slipped from 101.7 to 101.3 (down by 0.4%) to be down by 11% over the year.

This Index peaked in September 2013 at 145.3 and is down over 30% from that peak, Westpac chief economist Bill Evans noted.

There was a sharp fall in confidence around the outlook for house prices.

The Westpac Melbourne Institute Index of House Price Expectations fell by 3.9% to 124.2.

It is now down by 14.9% over the last three months and 25% from its peak in December 2013.

Evans says the Reserve Bank Board that next meets on November 3 will be encouraged by the signals from this survey and the official data that employment conditions and confidence around employment prospects appear to be finally improving.

"However it will probably be a little disappointed that confidence remains below the 100 level where pessimists outnumber optimists," he said.