Most Australians are “optimistic” about the property market and are still willing to invest, despite reports of a slowdown, according to Mortgage Choice.
According to a Mortgage Choice research, 64.3 per cent of Australians believe that the property market will remain strong and suitable for investment in the next few years.
“This data makes it obvious that the majority of Australians remain upbeat about investing in property and will continue to buy and sell dwellings,” Mortgage Choice chief executive officer John Flavell said.
Mr Flavell believes that the research indicates that reports of a slowdown in the housing market have been overblown, despite CoreLogic data reporting property price growth of only 0.4 per cent.
“[M]any market commentators have started to panic and are suggesting that this is the beginning of the end,” the CEO added.
“Some commentators have even gone so far as to suggest we could soon see a property price crash across some of the bigger markets, notably Sydney and Melbourne.
“The reality is, property prices are merely stabilising after a few years of runaway growth. This stabilisation is something we have long expected.”
The CEO attributed growth stabilisation to “significant changes” in investment lending policies and an inevitable correction of the initial growth spike spurred by a historically low cash rate.
Mr Flavell also sought to dispel rumours of an imminent market crash, claiming that economic indicators, which would point to a crash, are in good stead.
The Mortgage Choice head also cited figures from the Australian Bureau of Statistics saying that a population growth of 1.6 per cent in the year leading up to March 2017 suggests that supply must continue to keep up with demand.
“If we want to cater to our growing population, we need to build more properties, and that is exactly what we are doing,” the CEO continued.
He also encouraged Australians to continue pursuing their property investment interests.
“If you have plans to be in the property market,” Mr Flavell said, “now is the right time to achieve your goal.”