Positive news for Australians, economic updates from Westpac have been circulating around. Favourable business conditions and improved consumer confidence should support the housing market. And here’s a bit more information about what this means for you.
Consumer Confidence on the Rise
Consumer confidence was up an impressive 11.8 percent over two months in Westpac-Melbourne Institute Consumer Sentiment numbers released on Friday. The index, however, now stands at 94.6, its highest reading in about two-and-a-half years.
Expectations of the economy in the year ahead are improving by 23%, a general positive but not as much as last September. Family finances up by 7.3 percent. While not yet matched by stronger comparisons to financial conditions of a year ago, the trend up in confidence is positive.
It can help projects remain optimistic about this approach and spur people to do things related to property ownership or development.
Business Confidence Steadies
At +7 points, the NAB Business Survey continues to report steady business conditions – and the business confidence’s atmospheric rise of 7 points to +5. Economic growth forecasts, tax relief and the potential of good monetary policies are combining to help turn this cautious optimism into a real prospect. Lasting business gives you job security, which in turn helps the housing market.
How This Affects the Housing Market
If confidence builds the property market has a chance of activity. This may be an encouraging time for those who are not sure of buying or investing. As an economic climate improves, conditions are better for making big financial decisions like a loan on a home refinancing.
But a nod to improving confidence also suggests opportunities for property investors. In general, long term value in real estate is realized in firms with stronger sentiment and stable business conditions.
Global Trends to Keep in Mind
On a broader scale, China’s recovery from its economic slump and changes in U.S. policy could have an indirect impact on Australia’s property market. Knowing the bigger picture of these factors may influence borrowing costs or how future markets will move.
Conclusion
At ASK Financials, we focus on helping you make sense of the changing property market. Whether you’re looking to buy, refinance, or invest, we offer guidance that’s tailored to your goals.
As confidence continues to grow, it’s a good time to consider your options. Let us assist you in taking the next step toward achieving your property ambitions.
If you find this article useful then you can check out our in-depth articles on our website.Want to know how you could save thousands on your mortgage? Book a free chat with ASK Financials today!
