Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

Home buying intentions continue to rise

The Commonwealth Bank Household Spending Intentions series has shown that home buying intentions set a new series high in March.

Building on a growing trend, the major bank’s latest HSI report found that home buying intentions set a new series high last month, as both home loan applications and Google searches increased again. 

The HSI series, which intends to provide a forward-looking view by analysing actual customer behaviour from CBA’s transactions data, along with household spending search activity from Google Trends, found that home buying spending intentions increased in March to a new series high – up 40 per cent on an annualised basis.

According to CBA, residential property prices in Australia are expected to be up 8 per cent in 2021 and 6 per cent in 2022, with house prices expected to be 9 per cent higher this year.

The major bank noted that while part of the strength reflects the declines seen at the start of the COVID-19 period last year, the strong increase in March followed an increase in home loan applications and Google searches.

Advertisement
Advertisement

The bank said it expects the home buying market to be a key source of support for the Australian economy in 2021 – driven largely by the very low level of interest rates.

“We continue to see demand for residential property as a key source of support for the Australian economy in 2021,” CBA chief economist Stephen Halmarick said.

Indeed, the report showed improvement across five of the seven spending categories, including travel and entertainment, while health and fitness spending intentions remained the same and retail spending intentions dropped lower.

“The stronger Household Spending Intentions report is another signal that Australia’s economic recovery is ongoing,” Mr Halmarick said.

“The travel sector was among the hardest hit by the onset of the COVID pandemic, with border closures and a countrywide lockdown stifling nearly all travel-related activity.

“A year ago, bars, clubs, restaurants and movie theatres wrangled with the swiftly escalating restrictions in the lead-up to a countrywide lockdown. This March, the picture for this sector is much improved, as pent-up demand among consumers helped spur both actual and prospective spending on the category,” Mr Halmarick explained.

“This month’s data, while distorted by base effects, still demonstrates how far the sector has recovered since last year.”

[Related: Government ‘pleased’ with robust housing market]

Home buying intentions continue to rise
Home buying intentions continue to rise
mortgagebusiness

Latest News

The tech company has appointed its first female chief executive to succeed Ian Hendey and continue its expansion plans. ...

The third-party channel is now responsible for more than half of Bendigo and Adelaide Bank’s loan book, new data shows. ...

The Mortgage Business Uncut podcast is your weekly analysis of the biggest themes shaping the Australian mortgages market. ...

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.