Most consumers expect house price falls to continue: Westpac

Consumers continue to mark down their expectations for house prices albeit with a choppy profile in recent months, according to Westpac's latest Red Book.

A very weak March was followed by a surprising strong lift in April.

Overall, the Westpac Melbourne Institute Consumer House Price Expectations Index is down a further 0.3% since January.

Westpac economists suggest that likely understates the weakening with the first few months of the year typically seeing a seasonal rise in price expectations. 

At 95.6 the Index remains around the lowest levels since we began compiling it in 2009.

Earlier figures from a survey by Mortgage Choice suggest current reads are above GFC lows.

Of those consumers with a view, 32% now expect prices to rise over the next year, 32% expect no change and 36% expect falls.

The state breakdown continues to show a more bearish mix in NSW (30%:29%:41%) and Victoria (26%:29%:45%).

Notably, the price weakening in Perth does not appear to have weighed as heavily on price expectations.

The biggest downgrade in expectations over the last three months has been among Queenslanders.

Prices have continued to weaken in early 2019 albeit with some hints of milder declines in the last three months, although some of this may reflect seasonality with prices typically a touch firmer early in the year.