Consumer confidence in the housing market is low, with nearly two-thirds believing we’re facing a “substantial downturn in values”.
The latest Housing Market Sentiment Survey released by CoreLogic RP Data and TEG Rewards showed that at least 61 per cent of respondents were concerned about a housing market crash.
While the survey revealed concern about a substantial downturn in dwelling values, the result was unchanged when compared with a year ago.
The survey also revealed a decline in the percentage of respondents who think now is a good time to buy, with 61 per cent indicating they would consider buying a home, compared with 71 per cent a year ago.
Survey respondents in the Sydney and Hobart markets were the most sceptical, with only 40 and 50 per cent of respective respondents indicating that they would consider buying at this time.
Meanwhile, buyer sentiment in the Northern Territory increased by a substantial 20 percentage points compared with a year ago.
One in two survey respondents last year indicated an expectation for dwelling values to rise over the six months following, while only 31 per cent held this expectation over the most recent quarter.
Looking at the rental market, survey respondents revealed they are expecting relatively flat conditions, with 49 per cent indicating they thought weekly rents would remain unchanged over the year.
Mortgage rates are expected to remain on hold, according to the survey, with two-thirds of respondents forecasting rates to remain steady. A year ago, only 41 per cent of respondents anticipated steady mortgage rates.
The survey also revealed that just over one quarter of respondents believe mortgage rates will rise.
CoreLogic RP Data Asia-Pacific research director Tim Lawless said, “With bank funding costs moving higher, there is some risk that mortgage rates will increase outside of any movements from the Reserve Bank’s overnight cash rate”.