Consumer sentiment shifts to no house price changes this year: Westpac RedBook
Price “optimists” still outnumber “pessimists” but the median view is now firmly for no housing price change over the next year, according to the Westpac-Melbourne Institute Consumer House Price Expectations Index.
The house price direction index showed a further cooling in October.
The overall Westpac–Melbourne Institute Consumer sentiment survey showed a slight improvement in October, holding onto September’s 8.1% rebound and edging another 0.4% higher.
However Westpac senior economist Matthew Hassan suggests the overall message is still downbeat and the vibe is “edgy”.
“The index remains firmly in pessimistic territory with the steady monthly result concealing powerful undercurrents pulling sentiment in both directions.”
Responses show a big influence from financial market turbulence – which remains extreme across both equities and the Aussie dollar – and the RBA’s continued shift to an easing bias on interest rates.
The survey detail also showed a mix of improvement – on views on family finances, economic prospects and jobs – and deterioration – on “time to buy” a dwelling, a vehicle or a major household item and on house price expectations.
Consumers continued to show mixed view on housing.
Hassan notes that attitudes towards “time to buy a dwelling” fell sharply by 10.4% in October but this had followed a surprisingly big 15.1% jump in September.
