The latest Westpac survey shows that confidence in buying a home has risen to its highest point since the beginning of the year. Brokers are also reporting that some potential buyers are eager to purchase before a possible interest rate cut next year, which could drive up competition in the market.
According to the Westpac-Melbourne Institute Consumer Sentiment survey, many buyers expect interest rates to start falling early next year or, at the very least, to hold steady. They also anticipate that property prices will continue to rise.
Westpac senior economist Matthew Hassan notes that consumers are increasingly confident that rates are more likely to drop than rise. This renewed optimism is partly driven by new incentives for buyers, including first-home buyer assistance programs in Queensland and South Australia. Hassan predicts a cash rate cut in February and suggests there is little expectation that delaying a purchase will lead to better prices.
