Most Australians expect house prices to be higher in a year’s time - the most bullish outlook since mid-2010, a recent survey has found.
The Westpac and Melbourne Institute survey found 62 per cent of respondents expected house prices to rise over the next 12 months, while 30 per cent expected prices to remain stable. In comparison, only eight per cent believe there will be a fall - the lowest figure since April 2010.
The survey's house price expectations index also jumped to 53.9 per cent in April, from 26.7 per cent in January. The index is calculated by measuring the number of respondents expecting prices to rise minus those who expect a fall.
Matthew Hassan, a senior economist at Westpac, believes the result is evidence that Australia’s housing recovery is consolidating, and that buyers’ activity is unlikely to slow down in anticipation of lower prices.
“This is a substantial improvement, marking a break from the ‘moderately positive’ range the Index had been stuck in since January 2012,” Mr Hassan said.
“After an extended period of uncertainty, Australian consumers now look to be much more convinced that house prices are on the way up.”