The property market may not like the fact that in its latest survey of more than 1000 Australians, RP Data found that 60% of respondents thought the Australian housing market was vulnerable to a significant correction in values.
But it will be music to the RBA and APRA’s ears as it indicates that although the RP Data Nine rewards survey also found 76% of respondents thought it was a good time to buy a property, price appreciation might just be tempered by the overall cautiousness of owners and buyers.
Importantly, from a macro economic point of view, the regional break-up showed that the two biggest and arguably most important property markets of Sydney and Melbourne saw responses above the average, with 64.4% and 64.1% respectively.
Summing it all up, RP Data national research director Tim Lawless said:
“Clearly, Australians remain positive about the direction of dwelling values, however most respondents who think values will rise over the coming six and twelve months have fairly measured expectations of value growth with most suggesting values are likely to rise by less than 5% over the coming year.”
Good news for the economy and another sign that there is actually little chance of a housing bubble developing.