Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

Consumers respond well to rising house prices

The latest ANZ-Roy Morgan index has shown Australian consumer confidence remains steady in the current environment.

The data shows consumer confidence remained at 113.5, which is 11 per cent higher than one year ago, reflecting a more positive response to this year’s federal Budget.

“While it is a positive sign that consumer confidence has largely maintained the post-Budget bounce, the question is whether further momentum can build in coming weeks or whether the bounce will be retraced,” ANZ chief economist Warren Hogan said.

“Solid growth in house prices continues to be supportive for confidence but household fundamentals outside of housing remain weak amid low wages growth, a soft labour market, and high household debt.

“How consumers reconcile the conflicting forces of strong house price gains and weak income growth will likely be a key determinant of confidence going forward.”

Advertisement
Advertisement

The largest gains on the index in response to the Budget have been in expectations regarding the economic outlook for the next year and for the next five years.

These sub-indices have risen by a cumulative 5.7 percentage points and 8.6 points respectively over the past four weeks; however, they remain at subdued levels compared with previous years.

The category that includes the question about whether now is the "time to buy a major household item" saw the smallest gain of all the sub-indices over the past four weeks.

Consumers respond well to rising house prices
mortgagebusiness

Latest News

Home loans commitments took a positive turn in May following a fall in April, new data reveals. ...

Economists from three of the big four banks expect the Reserve Bank will hand down a similar cash rate hike of 50 bps today (5 July). ...

The banking group has confirmed it will be closing branches under the Westpac, Bank of Melbourne or St.George brands in more than 20 locatio...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think the new NSW property tax will help or hinder first home buyers?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.