Stats: Feeling the sentiment

Housing affordability remains a key economic issue

Despite housing prices having dropped recently in some areas of the country, nearly 90% of Australians still think a­ffordability is a significant issue, according to ME’s Quarterly Property Sentiment Report survey for Q2 2019.

However, it also found that younger people and investors keep a more positive property market outlook than first home buyers and owner occupiers.

“Positivity among investors and younger groups suggested some people were seeing price falls as an opportunity to buy,” ME’s general manager of home loans Andrew Bartolo said in the report.

For Bartolo, the enduring positivity on property price expectations over the next 12 months is “possibly linked to Australians’ long-held belief that property prices will always go up”.

“Sentiment has also likely improved since we conducted the survey given negative gearing now seems to be o­ the table and APRA has proposed changes to home loan serviceability,” he added.

According to Bartolo, the cooling property prices open opportunities for those who want to get into the market, but it is important they “think long-term and always buy a­ffordable”.