The results from the just updated Digital Finance Analytics Household Surveys shows that after a few wobbly months, demand for property has strengthened. The latest results supplement those found in the Property Imperative Report, which is still available on request. According to the results, lower interest rates, the removal of the negative gearing “risk”, no budget changes, and lower returns from alternative investments all lead to the same conclusion – buy property. We also note that property price rise expectations have risen for some. Over the next few days we will discuss our segment specific findings – looking especially at investors and first time buyers. Today, however we summarise the main trends.
In response to the question, are you expecting to transact in the next 12 months, we see a larger proportion of investors and refinancers expect to be active. Solo investors showed the largest movement compared with the February 2016 data.
More than half of households expect property prices to continue to rise in the next 12 months. Uptraders increased their expectations, compared with February, others were a little less bullish. But a fair degree of optimism reigns.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.