Survey shows homebuyer sentiment up

Survey shows homebuyer sentiment upA new survey shows increasing consumer confidence in the housing market, with prospective homebuyers indicating they believe now is a good time to purchase a home.The CoreLogic RP Data and Nine Rewards survey examined housing market sentiment in the September quarter, revealing 66 per cent of respondents were optimistic about buying property even as home values in capital cities continue to rise.This result represents a slight drop from the 71 per cent of respondents over the June quarter who said they felt it was a good time to buy property.”Most respondents still felt as if it is a good time to buy property, although with the current growth period having run for so long, it isn’t a surprise to see a slight fall in the proportion of respondents who think now is a good time to buy,” said Cameron Kusher, RP Data’s senior research analyst.The survey also reported variations across Australia, with RP Data noting that all Tasmanian respondents felt it was a good time to buy, and those in regional areas of Queensland (79.1 per cent), SA (80.0 per cent) and WA (75.9 per cent) also felt the time was right to buy.”On the other hand, only 52.8 per cent of Sydney respondents and 60 per cent of NT respondents felt now was a good time to buy,” the report said.”Sydney has recorded the strongest growth in values over recent years, so it is no wonder that a relatively high proportion of respondents no longer feel now is the time to buy. Recently, there have been signs of slowing value growth in the NT and perhaps respondents have realised this fact.”The survey also asked if Australia’s housing market was vulnerable to a significant correction.While 68 per cent of respondents said they believed Australia’s housing market is vulnerable to a significant correction, more than half of all respondents in each region felt the housing market could see a significant correction.”Interestingly, respondents from areas where values have seen minimal growth over recent years were most inclined to think a significant correction was a possibility,” the report said.”In Sydney and Melbourne, where values have recorded the greatest surge over recent years, the proportion of respondents who felt the market was vulnerable to a significant correction was around the national figure at 68.6 per cent and 67.3 per cent, respectively.”Summary findings, October 2014A total of 1021 Australian residents responded to the most recent survey of housing market sentiment from RP Data and Nine Rewards.In your opinion, is Australia’s housing market vulnerable to a significant correction in values?The majority of Australian residents think the housing market could suffer a significant correction in values. Sixty-eight per cent of respondents indicated that a significant correction was a possibility, up from 63 per cent in June and 66 per cent over the previous two quarters.From region to region, respondents located in regional SA and regional NSW were the most pessimistic about the propensity for housing values to suffer a significant downturn. Conversely, Sydney and Melbourne have recorded significant growth in home values over recent years, yet they sit in the middle of the road with respect to expectations of a significant housing market downturn.Is now a good time to buy a property or home?Is now a good time to sell a property or home?