RP Data’s May 2013 survey of housing market sentiment has just been released and has reflected an upward movement in consumer expectations for housing market conditions. The survey also reflected that a majority of respondents (55%) are expecting rental rates to rise over the next 6 months.
This would also have a kick on effect in the values of property as well. The survey showed that 41 per cent expected values to rise and 52 per cent expected property prices to remain steady for the next 6 months. Of the Perth respondents surveyed, 59% expected property values to rise over the same period.
This positive consumer sentiment, increasing rents and recent rate reductions by lenders as a result of the Reserve Bank’s rate cuts should attract significant investment in the property market. An ideal outcome would be for sustained but moderate recovery and an avoidance of reserve bank rate increases to slow rapid growth.
If you would like find out more about your borrowing capacity or home loan options, or speak to a home loan specialist, please call me on 0433 124 081.
Source- The Adviser