Confidence rebounds with upgraders to lead

by Mackenzie McCarty24 Oct 2012

Home buyers have gained confidence the property market has bottomed out and prices will recover over the next quarter.

The findings of the MFAA Home Finance Index show households are at their highest levels of financial confidence since May 2011, with 75.8% expecting prices will grow or remain stable this year.

The MFAA claims the up-tick in home buyer optimism is being driven by flat property prices and continuing falls in interest rates, which is creating a genuine 'buyer's market'.

'Next' home buyers were found to be more likely to consider buying a property, with 77.9% agreeing it is a good time to buy, and the majority preferring this to upgrading their existing property.

"All of the signs are for a recovery of the property market, with Western Australians the most optimistic of the states, followed by people in NSW," MFAA CEO Phil Naylor said.

"The property market is all about confidence and the survey confirms that good times are ahead, especially as interest rates continue to fall."

The improved sentiment comes despite the financial position of households remaining static.

The survey did find, however, that home loan borrowers were finding it easier to make repayments than they were six months ago.


  • by Will-Perth 24/10/2012 11:45:32 AM

    Gee, confidence is definitely NOT what I am hearing and seeing from my clients. Most are still every cautious to make a move. They do not believe anything that is coming out from agencies with an interest in the real estate industry. I cant blame them either. Most borrowers believe AT BEST prices will hold for up to a decade. Others think there is a potential for a major down movement when (not if) Europe goes belly up.