Sixty-eight per cent of those who participated in CoreLogic RP Data’s TEG Rewards Housing Sentiment Survey answered “yes” when asked if Australia’s housing market is vulnerable to a significant correction in values.
Only 32% answered “no”. The survey also noted that 41% of respondents expect prices to rise over the coming year, lower than the survey’s results for June and March, at 45%.
"While we don't envisage dwelling values will fall substantially, the probability of declines in Sydney, and to a lesser extent in Melbourne, after such a strong run of capital gains isn't unlikely," said Tim Lawless, CoreLogic RP Data head of research.
Indeed, recent data from CoreLogic RP Data revealed that annual rises on housing prices averaged just over 10% over the year to October.
Of those expecting prices to rise, only 3% expected capital gains of 10% or more.
The same report discovered that 42% expected prices to remain stable, while 16% are anticipating a fall in the market.
Among those who anticipated a fall in the housing market, only 7% expect the drops to be more than 10%.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan