New data has been released that reveals how consumer sentiment has trended following the first three months of the year, which contained many uncertainties for the property market.
According to PRDnationwide’s Q2 2019 Key Market Indicators report, consumer sentiment in the property market reached 100.7 points in April 2019, just barely passing the line of positivity.
This sentiment is a rise of 1.1 points compared to last quarter’s results but is down 1.7 per cent compared to 12 months ago.
The results were seen as “interesting”, according to a statement by PRDnationwide, as this data follows the final report of the banking royal commission, budget 2019 and the announcement of the 2019 federal election.
“That said, the current positive outlook is welcomed as it suggests Australians have a higher propensity to spend, thus keeping the Australian commercial market alive,” the statement from PRDnationwide read.
Meanwhile, first home buyer activity was on the decline, falling 5.8 per cent over the last 12 months, while the Australian Home Loan Affordability Index rose by 1.3 per cent during the same period.
While this result may seem contradictory, a number of additional factors have contributed to the decline in first home buyers, like tight finance, capital city market price growth declines, political instability and the potential for taxation changes.
This being said, first home buyer activity increased by 2.6 per cent in NSW and 1 per cent in Victoria.
Dwelling approvals were also down around the country by 21.7 per cent over the last 12 months to March 2019, allowing for new or under-construction property stock to be absorbed, which the report indicated is likely to occur due to the fact that the unemployment rate dropped by 9.1 per cent over the last 12 months to March 2019 and the weekly family median income rose by 2.6 per cent over the last 12 months to December 2018.
According to the report, this means that Australians have more income to spend, which potentially could be higher, and that the economic fundamentals in the market are strong.