Australians think now is the time to buy
June 20, 2014 / Written by Rich Harvey
New data from Westpac and the Melbourne Institute could be encouraging for people in Sydney thinking about taking the leap into home ownership.
"Consumer views on housing are showing some intriguing shifts," Westpac Senior Economist Matthew Hassan said recently.
"The index tracking assessments of 'whether now is a good time to buy a dwelling' rebounded sharply in June, rising 11.4 per cent after recording substantial declines over the previous three months."
Meanwhile, the Westpac-Melbourne Institute House Price Expectations Index recorded a decrease of 11.1 per cent during June, following a 9.8 per cent fall in May.
"The Index is at its lowest level since July 2012, when house prices were emerging from a significant correction," Mr Hassan continued.
"While those expecting house prices to rise over the next 12 months still outnumber those expecting declines, nearly a third of respondents now expect prices to be unchanged."
In short, Australians are increasingly feeling like now is a good time to buy, and changing sentiment regarding house prices is likely a major contributing factor.
This view is supported by research from RP Data showing dwelling prices decreased 1.9 per cent overall in Australia's capital cities during the month ending May 31. This decline marked the first monthly decrease since May 2013.
RP Data's Tim Lawless said that besides seasonal factors, the research firm had been "seeing signs that the housing market is approaching the peak" of its growth cycle.
It appears this trend is benefiting others besides those looking to buy property in Australia.
Knight Frank recently reported that house prices are cooling around the globe, saying that price growth during the first quarter of 2014 was slower.
Together with low home loan rates, buyers in Sydney and beyond will find it's more affordable to enter the market at the moment.