According to the latest quarterly housing market sentiment survey by CoreLogic and TEG rewards, almost two-thirds of Aussies think now is a good time to purchase residential property. Yet roughly the same proportion also believes that the housing market is vulnerable to a significant correction.
Sydney-based respondents were the most pessimistic among the 2,432 Australians surveyed, given the affordability constraints in their city. Still, slightly more than half of them felt that it was still a good time to buy.
On the other hand, regions where dwelling values have already peaked and now show a downturn are where respondents feel confident about buying conditions. These include 80 per cent of the respondents from the Northern Territory, Regional Western Australia, and Perth.
On the national level, 38 per cent of respondents expects dwelling values to rise over the next 12 months. This is lower than a year ago, indicating that respondents have become less optimistic with regard to their views on capital gains over the next financial year.
When it comes to rent, only 11 per cent of the respondents expect weekly rents to fall over the next 12 months, despite CoreLogic rental series showing the weakest rental conditions in at least two decades.
The numbers are closer to equal on the national level between those who expect the rent to rise and those who expect it to remain stable, but there were considerable variations across the regions. There is a low expectation of rental rises in Perth and Regional Western Australia, in line with current statistics showing ongoing falls in weekly rents across most parts in Western Australia.