Confidence in the Australian housing market is rising, with a Westpac consumer survey revealing a strong uplift in consumer sentiment.
The national “house price expectations” index grew by 32% to 117, with all states registering a double digit increase.
The national “time to buy a dwelling” index increased 11% in the past month to 122, rising to its highest level since September 2019.
Westpac chief economist Bill Evans says it as an extraordinary result, stating the overall consumer sentiment index was up 32% in the past two months, and 10% above the average level in the six months prior to the pandemic.
“Such a development must be attributable to the response to the Federal Budget; ongoing success across the nation in containing the Covid-19 outbreak; and the expectation that the Reserve Bank board is likely to further cut interest rates at its next meeting on November 3.”
There was also a “stunning lift” in confidence around job security, says Evans, with the index improving by 14 to early 2019 levels.