Consumer confidence spurred on by strengthening housing market
The latest Westpac Melbourne Institute Index of Consumer Sentiment has recorded a 1.9 per cent rise between October and November. This highlights the increasing confidence in the housing market as a main proponent of this rise.
This could be great news for anyone interested in buying a house in the near future. Regardless of whether you're a first home buyer, a home upgrader, or interested in purchasing an investment property to begin your portfolio - now could be the perfect time to take advantage of the market.
The Index increased from 108.3 in October up to 110.3 in November and is beginning to reach highs last seen during the July-December period of 2010, where the Index rose to a whopping 114.
Westpac's Chief Economist Bill Evans said the survey was conducted following the Reserve Bank's decision to keep the cash rate at 2.5 per cent. After being reduced to the historically low level back in August, Australia's housing market has been experiencing a number of changes.
Unemployment during the period was stable at 5.7 per cent, while house values increased by 1.9 per cent during the September quarter. Sydney underwent a 3.6 per cent growth over the quarter, leading to a 11.4 per cent increase over the year to date.
Melbourne, Brisbane, Perth and Adelaide also saw significant rises in property values during the the year, increasing by 6.8 per cent, 4.1 per cent, 8.6 per cent and 1 per cent, respectively.
This reflected in the consumer index increases, where New South Wales and Western Australia both experienced growth - rising by 7.7 per cent and 3.2 per cent, respectively.
"Confidence around the housing market was also apparent in the Index of House Price Expectations which rose by 3.1 per cent to be 23per cent above its October 2012 level," said Mr Evans in a November 13 statement.
Furthermore, there were increases in the 'Time to Buy a Dwelling' Index, which grew by 4.2 per cent overall, and highlighted specific growths in New South Wales, Victoria and Queensland.
With a strong and confident market, now could be a great time to begin looking into the real estate options available to you.
Regardless of whether you're looking to purchase real estate or sell your property, beginning your preliminary research now could be conducive to housing success in the future.