Despite dwelling values moving out of reach for many as the housing market broadly approaches four-and-a-half years of growth, perceptions around whether now is a good time to be purchasing property have improved over the past year.
Sentiments varied depending on the region. The survey—which polled 2,442 Australian residents—showed that in Sydney, a majority of respondents were pessimistic about buying a property right now. This isn’t surprising since the median house price in Sydney hit $1,068,303 in September, according to Domain Group.
However, in regions where dwelling values have peaked and entered a downturn, respondents expressed the most confidence about buying conditions. Ninety-percent of respondents in the Northern Territory and 80% of respondents in Perth think now is a good time to be purchasing a property or home.
“Perceptions around selling a home have weakened over the past twelve months, which is likely attributable to slower housing market conditions across many markets,” said Tim Lawless, head of research at CoreLogic.
“CoreLogic data shows that transaction numbers have been moderating across most capital cities. However, auction clearance rates are close to record highs and newly advertised listing numbers are tracking lower than a year ago nationally.”
Unsurprisingly, considering the growing demand and strong median house prices in Sydney and Melbourne, the survey revealed that residents in these two cities were more optimistic about selling conditions. Seventy-four percent of respondents in Sydney indicated they think now is a good time to sell, and 70% of respondents in Melbourne expressed the same sentiment.
The weaker housing markets had the most pessimistic survey responses. Only 20% of respondents in Perth (WA) and the Northern Territory think now is a good time to sell, highlighting the weaker housing market conditions in these regions.
Somewhat counterintuitively, 67% of respondents indicated they thought the Australian housing market was vulnerable to a significant correction in dwelling values. A significant proportion of respondents who were concerned about a major drop in dwelling values were based in areas where home values have already moved much lower.
Ninety-percent of respondents from the Northern Territory thought the market was vulnerable to a significant correction, and more than 70% of regional South Australia, as well as regional Victoria and Perth, were concerned about the possibility of a significant correction.
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