New research shows would-be property investors are confident about the economy but are still unwilling to ‘dip their toe’ in.
According to Core Data, positive sentiment hit a 15-month high amongst investors, although overall levels are still low and the intention to purchase is even lower.
The report found intention had dropped from -24.3% in the March quarter to -29.7% in June.
Kristen Turnbull, head of advice, wealth and super at Cor eData told Australian Broker Online the overall low levels were due to the industry being in a serious “rut for some time.”
“We hit an all-time low last quarter for investor sentiment. We’re still very much in the recovery period, and people are generally still a little nervous although it has improved.”
She said the results pointed to a disparity between feeling confident and taking the next step and actually investing.
The expectation of further rate cuts over the next three months was also playing a significant part in whether people “would dip their toe in,” she said.
As for the next 12 months, Ms Turnbull said conditions would more than likely remain volatile, making it difficult to predict a strong recovery or even a decline.
“We have a sailing analogy: over the next 12 months, financial services that deal with borrowers [including brokers] will be sailing from gust to gust. The market conditions will continue to be choppy,” she said.