Finder.com.au

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<p>A record two thirds of Australians say now is a good time to buy property, according to the latest research from comparison website Finder.</p>

<p>Having surveyed over 20,000 respondents in their Consumer Sentiment Tracker nationally, 67 per cent believe now is a good time to buy, an all-time high since Finder began tracking the stat in May 2019.</p>

<p>It was 42 per cent in April.<br><br>
Graham Cooke, insights manager at Finder, said that the recent uptick in buyer confidence is a good sign for the economy. <br><br>
“This rebound in buyer confidence is indicative of increased economic activity over the past few months, along with an optimistic outlook for 2021," Cooke says.<br><br>
“Not only did the Australian government do a better job than most at restricting the spread of COVID-19, but federal and state economic support measures helped prop up the property market.  </p>

<p><img alt="" height="738" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/finder_survey_january.jpg" width="1200"></p>

<p>“Now we're seeing that house values in every capital city bar Melbourne are higher than they were compared the same time last year. <br><br>
“This trajectory looks set to continue, with 86% of economists telling Finder* that they expect prices to fully recover nationally this year,” Cooke said. </p>

<p>Nearly 19 per cent of Australians expect house prices to "significantly increase" in their area. That was just five per cent in September.<br><br>
Those who expect property values to "somewhat increase" has jumped to 44% from a low of 18% back in April. </p>
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Graham Cooke, insights manager at Finder, said that the recent uptick in buyer confidence is a good sign for the economy.

Joel Robinson

A good time to buy property? A record high number of Aussie's think so

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<p>Experts are positive that Australia is on track to exit a recession, and that property prices will return to 2019 levels next year, according to this month's Finder RBA Cash Rate Survey.</p>
<p>Of the 40 experts and economists who weighed in on future cash rate moves and shared their key economic and financial predictions for 2021; all 40 correctly predicted that the cash rate would remain at 0.10%.</p>
<p>From the closure of major bricks-and-mortar retail stores to the national uptake of a COVID-19 vaccine, experts were asked to rate the likelihood of various economic scenarios unfolding in the year ahead.</p>
<p><strong>Australia will exit recession</strong></p>
<p>When asked about the likelihood of Australia exiting and staying out of a recession in 2021, all 28 experts who weighed in agree that this is either “likely” (54%, 15) or “very likely” (46%, 13).</p>
<p>Economists are also optimistic about the nation’s GDP growth, with 79% (22) expecting the economy to see its first quarter of growth before the end of 2020.</p>
<p>Graham Cooke, insights manager at Finder, said that the nation’s economy may have already recovered.</p>
<p>“Official GDP figures for the September quarter will be released this Wednesday, with the general consensus being that Australia may have already exited a recession.</p>
<p>“This can largely be attributed to almost $500 billion in government and central bank stimulus and effective COVID-19 control measures alongside news of a vaccine, strong consumer spending, and a resilient property market.</p>
<p>“It remains to be seen if our economy can keep moving uphill once the training wheels come off.</p>
<p>“The December quarter is likely to be robust as well, meaning it’s highly probable that we may see a gradual recovery of GDP through 2021,” Cooke said.</p>
<p><strong>Property prices and sales volume to return to 2019 levels</strong></p>
<p>Australia’s property price recovery looks set to continue.</p>
<p>More than 4 in 5 experts (85%, 24/28) predict that house prices will increase above 2019 levels next year, and 79% (22/28) think that sales volumes will recover to match or exceed 2019 levels.</p>
<p>CoreLogic data shows that, despite predictions of up to 15% drops in value earlier in the year, house prices in Australia have proved resilient.</p>
<p>Prices increased in all capitals bar Melbourne in October and were significantly higher compared to October 2019 in all cities bar Perth, which saw a marginal price increase of only 0.04%.</p>
<p>According to Matthew Tiller of LJ Hooker, record-low interest rates have been a key driver of market stability.</p>
<p>“One of the main beneficiaries of the ongoing record low rates has been property markets, with LJ Hooker agents reporting a significant increase in enquiries and strong levels of sales transaction volumes,” he said.</p>
<p><strong>Closure of major bricks-and-mortar stores due to increase in online shopping</strong></p>
<p>E-commerce surged during the pandemic, with more than 8.5 million households shopping online between March and October in 2020 according to Australia Post figures.</p>
<p>Yet over half of the experts (56%, 15/27) believe that the recent uptick in online shopping could be the death knell for major bricks-and-mortar department stores like Myer and David Jones.</p>
<p>Cooke said that Aussie shoppers are becoming increasingly wise to the outdated retail model used by department stores.</p>
<p>“Department stores operate on an old-fashioned regular discounting model, where an item is advertised at an inflated price for several weeks, only then be ‘on sale’ for several more weeks.</p>
<p>“Consumers are becoming annoyed by this false discounting, and they prefer the flat low-cost pricing offered online,” Cooke said.</p>
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j.ballantyne1990-6AQqhLzZaK

Australian property to bounce back in 2021: Finder.com.au survey

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<p>Despite mounting speculation about the possibility of another cut, the RBA announced that it will hold the cash rate at 0.25% at its October meeting.</p>
<p>In this month's Finder RBA Cash Rate Survey™, 40 experts and economists weighed in on future cash rate moves and other issues related to the state of the Australian economy.</p>
<p>The decision coincided with the unveiling of the federal budget for 2020-2021, in which the government has detailed how it intends to steer the nation out of its first recession in 30 years.</p>
<p>Despite the October rate hold, 22% of experts (9/40) predict that a cut could still be on the cards in November.</p>
<p>Graham Cooke, insights manager at Finder, said that a standalone cut of 15 basis points is unlikely to have much of an impact on Australia’s economy.</p>
<p>“The cash rate has fallen by 125 basis points over the last year and a half– 15 more is unlikely to make much of a difference beyond making the RBA feel like they are at least doing something.</p>
<p>“The decision to hold the rate for now also suggests that the RBA wants to assess the budget in detail before making a decision about further moves,” he said.</p>
<p>Susan Mitchell, CEO at Mortgage Choice, agrees, stating that while the RBA has hinted at a rate cut, it would be unlikely to do so today.</p>
<p>“Although a case could be made for a cut this month, I think the RBA will keep the cash rate unchanged at its October monetary policy meeting.</p>
<p>“Board members will wait to digest the Federal Budget announcement before making their next move," Mitchell said.</p>
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RBA held but November rate cut expected: Finder

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<p>Around 65% of economists who weighed in on this question (17/26) say now is a good time to buy property, with recent ABS data revealing a surge in owner-occupier purchases worth $1.2 billion between June and July 2020. </p>
<p>Almost all respondents (86%, 24/28) agree that the housing market is showing more resilience than expected, despite a rising unemployment rate, JobSeeker cuts and the Victorian lockdown.</p>
<p>Rebecca Cassells of Bankwest Curtin Economics Centre said that government stimulus measures during the pandemic have largely propped up the property market.  </p>
<p>“The current resilience of the housing market is related to the stimulus that both federal and state governments are directing to the sector and not necessarily driven by current economic conditions,” Cassells said.</p>
<p>When asked about the areas where house prices are most likely to retain their value, those who weighed in cited the coastal surrounds of Sydney (50%, 9/18), followed by Greater Melbourne (41%, 7/17).</p>
<p><strong>Where do you think house prices are the most likely to retain their value? </strong><br><img src="https://mcusercontent.com/cc5e9bce699fa1d71a67cf499/images/2eb82b1e-4ddb-4737-8b9e-18e3176ef79c.png" data-imagetype="External"></p>
<p>When it comes to the rental market, experts predict prices to decrease in both Sydney and Melbourne by 5% and 8% respectively, yet minor price hikes are forecast for Canberra and Darwin (+2%), as well as Hobart (+1%). </p>
<p><strong>Economic Sentiment Tracker </strong></p>
<p>Experts are feeling optimistic about Australia's GDP, with two-thirds (66%, 19) expecting GDP growth before the end of 2020.</p>
<p>Yet over three-quarters (77%, 23) believe Australia has not seen the worst of the unemployment rate, and expect it to rise before 2020 ends. Only three respondents (10%) think that it will go down from here.</p>
<p>Finder's Economic Sentiment Tracker gauges experts' confidence in five key indicators: housing affordability, employment, wage growth, cost of living and household debt.</p>
<p>Cooke said that sentiment toward housing affordability is tipping down after a record high last month, signalling that property prices may not be set to plummet as hard as previously predicted. <br><strong id="x_x_docs-internal-guid-738c7843-7fff-ef14-92f6-891b095fc667"></strong></p>
<p><strong id="x_x_docs-internal-guid-738c7843-7fff-ef14-92f6-891b095fc667"><img src="https://lh4.googleusercontent.com/CxZhj5xApfMZsSbfvzkYXwV4Lb27JdCV-fKVtBSCsG7jIanihy613VWXX1jBrZJRzrFwC-acTjOYGysXQavMGkrHvUL_M-sOPFGqg0QGBN0lkG1vbbXyHyGtByZPqHpdatMl2p_K" data-imagetype="External"></strong></p>
<p>“In terms of economic sentiment, there has been a curious rise in positivity around employment this month. </p>
<p>“With government benefits on the chopping block, it seems economists are increasingly confident that the slowly awakening economy will cushion the blow,” he said. <br><strong id="x_x_docs-internal-guid-d48168b9-7fff-5327-22db-ed2988e117cc"></strong></p>
<p><strong id="x_x_docs-internal-guid-d48168b9-7fff-5327-22db-ed2988e117cc"><img src="https://lh5.googleusercontent.com/QGDaBqrz1yL1nEtglAeg1jRIBm0J9HppQ87IFQKY2f5HGhaLwit7VkiYFuEW5RbbKUZJFTRcLjJoXp93qbB1f4DwVZfsp4yhACg4mAUO3JX7YYPTierHppY0kCl9vFPPr8wwpy_e" data-imagetype="External"></strong></p>
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Two thirds of economists say buy property: Finder

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<p>Mortgage approvals jumped over 10 per cent over July to bounce back to pre-pandemic levels, recent statistics from the ABS found.</p>
<p>The number of mortgages approved rose from 25,713 in June to 28,322 in July, the largest monthly increase since COVID started to impact Australia.</p>
<p>There was a $1.2 billion spike between June and July for owner occupier property purchases, with 59 per cent of Australia believing now is a good time to buy property, Finder.com.au research suggests.</p>
<p><img src="https://www.urban.com.au/images/2020/9/30/Finder%20loans.png" alt=""></p>
<p>Finder's insights manager Graham Cooke said the figures signal fresh energy in the housing market.</p>
<p><span>“Judging by the surge in activity, plenty of Aussies are fired up about property again", Cooke said.</span><br><br><span>“The housing market is also benefiting from the pent-up demand released with the restarting of auctions and inspections in several places. </span><br><br><span>“The full economic impact of COVID-19 has yet to be realised, but Aussies are unshakable in their love of housing,” he said. </span></p>
<p><span>Finder's</span> research shows 11,018 first home buyers have got a foot in the property market in July, 20 per cent more than May.</p>
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jrobinson-rf4aSBido9

Mortgage approvals jumped to pre-COVID levels in July

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<p>The highest ever number of Australians refinanced their homes in May, according to Finder.com.</p>
<p>The latest ABS lending data revealed that the total number and value of refinanced home loans peaked in May 2020.</p>
<p>The total value of these refinanced home loans exceeded $15.1 billion in May, up 26% from the previous high of $12 billion in April.</p>
<p><img src="https://www.urban.com.au/images/2020/7/15/FINDER%201.png" alt=""></p>
<p>Graham Cooke, insights manager at Finder, said this shows more Australians are taking advantage of rock-bottom rates</p>
<p>“As budgets are stretched, a record number of people are deciding to get a better deal on their largest investment.</p>
<p>“While the value of houses may well drop in the next year, the mortgages on them will not,” he said.</p>
<p>“Historically low interest rates and a lack of investor spending are a double whammy to banks, but a boon for mortgage holders,” Cooke added.</p>
<p>For example, on the average loan of $494,462, Finder analysis shows the average standard variable rate from the Big Four banks is 4.04%.</p>
<p>If that rate were to drop 50 basis points to 3.54%, this would mean $36,287 saved over the life of the loan.</p>
<p>The number of refinanced loans jumped 30% in a month, from 25,998 to nearly 33,712 in May.</p>
<p><img src="https://www.urban.com.au/images/2020/7/15/FINDER%202.png" alt=""></p>
<p>The record number comprised both external refinance loans (which involve people switching lenders) and internal refinance loans (which involve customers getting a better rate from their current lender).</p>
<p>External loans reached 21,473 and internal loans reached 12,239.</p>
<p>Despite all-time highs in both internal and external refi categories, 64% of all refinance loans are Australians switching lenders – the largest disparity ever.</p>
<p>Cooke said Aussies are shopping around and it is a good time to be looking for a lower rate.</p>
<p>“With the cash rate at 0.25%, the best home loan rates now start with a 2. If yours does not, it might be time to go home loan shopping.</p>
<p>“Additionally, now is a good time to ask for your bank to go the extra mile. Several lenders are offering to waive fees for new borrowers, and some are even offering extras like offset accounts at no additional cost.”</p>
<p><strong>Some of the market's lowest variable rates in July 2020</strong></p>
<p><strong><img src="https://www.urban.com.au/images/2020/7/15/FINDER%203.png" alt=""></strong></p>
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Record number of Australians refinanced homes in May: Finder.com

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<p>Experts say now may not be the best time to buy property, according to comparison site Finder.</p>
<p>In this month’s Finder RBA Cash Rate Survey™, while all experts surveyed expect a cash rate hold in July (43/43), just one third of respondents (15, 35%) said that now is a good time to buy property.</p>
<p>Another third (13, 30%) believe that buyers should sit tight and wait for the property market to settle, while the others were unsure (15, 35%).</p>
<p>Clearance rates – which measure the percentage of homes that sell at auction – have fallen in Sydney and Melbourne from 77% in February to 63% and 61% respectively.</p>
<p>Experts predict that clearance rates for both Sydney and Melbourne should sit at around 61% by the end of September.</p>
<p>Graham Cooke, insights manager at Finder, said the housing market is in a very unsettled position, with reduced stock levels and lower clearance rates.</p>
<p>“Increasingly, auctions are topping-out at final bids well below reserve."</p>
<p>“With more job uncertainty on the horizon, it’s difficult to see any improvement in the near future,” Cooke said.</p>
<p>Experts were asked to make predictions about house and unit property values in the eight capital cities.</p>
<p><span><span><img src="https://mcusercontent.com/cc5e9bce699fa1d71a67cf499/images/a8275f42-f4d2-4125-846d-844d591e0e60.jpg" data-imagetype="External"><br></span></span></p>
<p><span><span>Apartments are due to be harder hit than houses, with 7-8% price drops predicted by the end of September against just under 5% for houses.</span></span></p>
<p><img src="https://mcusercontent.com/cc5e9bce699fa1d71a67cf499/images/5c40e2e8-23df-490e-be51-c4c670720639.jpg" data-imagetype="External"></p>
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Experts warn against buying property with units to be hit hardest: Finder.com.au

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<p>More than four-fifths of experts (29/34, 85%) say the economy won’t fully recover until at least 2022.</p>
<p>However, more than one-third of experts (37%, 14/38) expect Australia to have its first quarter of GDP growth in Q3 2020.</p>
<p><img src="https://mcusercontent.com/cc5e9bce699fa1d71a67cf499/images/d8d0b433-be64-41ce-8ca2-8f894987f81f.png" data-imagetype="External"></p>
<p>Mark Crosby, applied macroeconomist at Monash University, said Q3 GDP growth is more about how bad the preceding quarters have been.</p>
<p>“If growth in Q3 2020 was measured against any quarter in 2019 it would be negative.</p>
<p>“In other words it's growth but nowhere near a reversion towards trend in Q3, not the end of recession (other than in definition) and not the end of rising unemployment,” Crosby said.</p>
<p>Restaurants and bars won’t return to normal until 2021</p>
<p>Those anxious for a "normal" restaurant experience once restrictions ease, may be waiting longer than they think.</p>
<p>Nearly half (47%, 15/31) of the experts who weighed in on hospitality said restaurants and bars won’t be operating at full capacity and without social distancing restrictions until 2021.</p>
<p>Less than a third (10, 31%) expected to see this happening this year.</p>
<p>Cooke said while restrictions are beginning to be relaxed, Australia still has a way to go until things return to normal.</p>
<p>“While restrictions are beginning to ease, it’s clear we’re still a long way off from booking a big group table at the pub over the long weekend,” Cooke said.</p>
<p>More than one-third of experts (37%, 14/38) expect Australia to have its first quarter of GDP growth in Q3 2020.</p>
<p>Mark Crosby, applied macroeconomist at Monash University, said Q3 GDP growth is more about how bad the preceding quarters have been.</p>
<p>“If growth in Q3 2020 was measured against any quarter in 2019 it would be negative.</p>
<p>“In other words it's growth but nowhere near a reversion towards trend in Q3, not the end of recession (other than in definition) and not the end of rising unemployment,” Crosby said.</p>
<p>Restaurants and bars won’t return to normal until 2021</p>
<p>Those anxious for a "normal" restaurant experience once restrictions ease, may be waiting longer than they think.</p>
<p>Nearly half (47%, 15/31) of the experts who weighed in on hospitality said restaurants and bars won’t be operating at full capacity and without social distancing restrictions until 2021.</p>
<p>Less than a third (10, 31%) expected to see this happening this year.</p>
<p>Cooke said while restrictions are beginning to be relaxed, Australia still has a way to go until things return to normal.</p>
<p>“While restrictions are beginning to ease, it’s clear we’re still a long way off from booking a big group table at the pub over the long weekend,” Cooke said.</p>
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85% of experts say economy won't recover till 2022: Finder.com.au

<html><body><p><span>Despite spending more than $320 billion in response to COVID-19, experts say even more money will be needed from the government, according to the latest Finder survey.<br><br>Results from the <a href="https://www.finder.com.au/rba-cash-rate" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">Finder RBA Cash Rate Survey™</a> this week, show that experts and economists are unconvinced that the federal government’s stimulus packages will be sufficient to see the country through to the end of the year.<br><br>Three-quarters (73%, 16) of respondents said they expect another stimulus package will be needed. <br><br>A similar number (75%, 15) who weighed in on the Australian shares market, expect it to fall further this year.<br><br>Graham Cooke, insights manager at Finder, said as hard as it is to believe, 16.4% of the country’s nearly $2 trillion GDP may still not be enough.<br><br>“If the aim is to build a bridge to the other side of this crisis, there might still be some materials that need to be purchased.<br><br>“On top of trying to close the gap, this pandemic has created, the near-40% loss in value of Australia’s share market may not be over just yet. <br><br>“With the full effects of coronavirus still to be understood, expect the high volatility we have seen in the shares market of late to continue for months.”<br><br><strong>Cash rate to stay put, but QE on cards</strong><br><br>All 23 economists and experts surveyed expect the Reserve Bank of Australia (RBA) to hold the cash rate at 0.25% on Tuesday.<br><br>“Most economists highlighted that the RBA will treat 0.25% as if it is 0% and have no appetite to cut further. <br><br>“This leaves only one effective tool in the RBA’s armoury: quantitative easing,” Cooke said.<br><br>Quantitative easing (QE) is a process where the central bank creates new cash to decrease, or ease, the cost of borrowing.<br><br>In Finder’s December 2019 survey, nearly half (46%) of experts predicted it was likely we’d see QE in 2020, well before there was any concern of a global pandemic or a lockdown. <br><br>RBA governor Phillip Lowe insisted at the time that the federal bank had “no appetite” for QE.<br><br>Shane Oliver of AMP Capital said history has shown the folly of going to negative interest rates in other countries.<br><br>"0.25% has long been identified by the RBA as the lower bound. <br><br>“There is little benefit to be gained by going to zero or negative based on the experience of Europe and Japan," Oliver said.<br><br><strong>Economic Sentiment Tracker </strong><br><br>Results from Finder’s Economic Sentiment Tracker, which gauges five key indicators – housing affordability, employment, wage growth, cost of living and household debt – dropped to new lows across most metrics.<br><br>Cooke said negative sentiment on household debt, wage growth and employment are at 62%, 86% and 100%, respectively.<br><br>“The sentiment on employment is our first-ever 100% negative response on any economic metric. The COVID-19 pandemic has taken a sledgehammer to the economy, and there is no end in sight,” he said</span><br><br><strong id="x_docs-internal-guid-0ba9c28b-7fff-53ab-eb87-fac314cef0ac"><img src="https://lh5.googleusercontent.com/EkKquNOhes7Tm1rEIH4TFfqG7gKfRn233LzWKxxaIRJXA-ImJe6d6KF7EGwabJCLcn9OQG0GrB6ASTYvrYvnrKH7SF_TFwrgf2jpizHNlXOWHmWnd8FAExFiYndLN7H4_8L6Hjao" width="602" height="387" data-imagetype="External"></strong><br><br><span><span>Cooke said there was one result that portends good news for homebuyers.<br><br>“The social gathering restrictions have had a large positive effect on housing affordability.<br><br>“With estate agents obliged to take viewings by appointment only, and auctions forced online, downward pressure on the housing market is inevitable. <br><br>“With both fixed and variable rates at record lows, anyone who has a deposit saved up right now could be in a very powerful position.”<br><br>The rise in positivity around housing affordability – at its highest level since last June – has pulled the average of positivity across all five metrics higher than last month.<br><br>“Before the pandemic hit, the worry was that housing prices were continuing to rise even as wages, household debt and cost of living didn’t improve. <br><br>“Now, after a global business disruption unrivalled in recent history, the cost of housing might just come back into sight for some Aussies looking to buy,” Cooke said.</span></span><br><br><strong id="x_docs-internal-guid-d3c10dbb-7fff-d188-0591-24095c153cda"><img src="https://lh5.googleusercontent.com/QYdBAIcGt_SVYh6Bc-ixcBeeNpaIlPnjBzGbuvmBOPXlXRoqJhZtwY_hbG5PBkmVpSky4kpLBbnJEbAqPxSadD0IAD8NxBxouhp8y2nKXur0bWsqP0MeOfsyrhSGxmARElDpIcEC" width="602" height="399" data-imagetype="External"></strong><br><br><strong id="x_docs-internal-guid-559e066f-7fff-ef6d-55c6-e52c0aa43ed0"><img src="https://lh3.googleusercontent.com/Nn1XHJFGWvNg2nZlmyxjukWBdAKyluQlFllWabQWb53kZ2ib9gOy0ZQEkRVYuil9Rlxr-bc6WCU2Um_hRp722YTcHoEBzec_PXZ61XbJqfH5H9zGd6PM8QWlJBOzRMsCsEkNizs7" width="602" height="404" data-imagetype="External"></strong></p></body></html>

Experts forecast more economic stimulus and ASX falls: Finder.com.au

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<p>There's an increasing number of consumers who think now is a good time to buy property, however Finder.com.au's RBA Cash Rate Survey found experts and economists weren't so sure.</p>
<p>In April 2019, nearly 60 per cent of experts reported positive sentiment about housing affordability in Australia, however that number has now dropped to 17 per cent. </p>
<div><strong id="docs-internal-guid-c802fc80-7fff-e67d-e999-b8d7117cba26"><img src="https://lh5.googleusercontent.com/14mfL2vxFbPOJ3cFpZOa6i62wsnie6nBWosnmUPQHx3uQibyOWzOFucfx1Z0dBHBKXm7J4Th7ODSM1BoAF3Y9Y1q2A4DUrCEZs-ImIKUnHVcrQjX5fXYYxQeWvVFfI2hZu1CdbyQ" width="602" height="416"></strong></div>
<div><strong> </strong></div>
<div>Graham Cooke, insights manager at Finder, said economists clearly haven’t been persuaded by this year’s three RBA rate cuts when it comes to housing.</div>
<div> </div>
<div>“Housing affordability cuts both ways. When it is high or economists feel positive, property prices can be relatively low meaning more Aussies have a chance to buy," Cooke said.</div>
<div> </div>
<div>"The flipside of course is home values might be trending in the wrong direction and no one wants to catch a falling knife.</div>
<div> </div>
<div>“When housing affordability is low or economists feel negative, the cheery news is that property values are on the way up, but unfortunately it also means that those ready to buy might not be getting a bargain,” Cooke said.</div>
<div> </div>
<div>Peter Boehm of KVB Kunlun said the RBA cuts are actually doing more harm than good.</div>
<div> </div>
<div>"House prices have been increasing (making it harder for first time buyers to get into the market), existing mortgage holders are maintaining repayments at current levels to help reduce their debt quicker, and therefore not spending this "freed up" cash," Boehm said.</div>
<div> </div>
<div>“There's been little or no impact on the unemployment rate, corporate investment has not rebounded, business confidence is low, and the continuing reduction, and signalling of future rate reductions is sending negative messages to consumers about their economic outlook,” Boehm said.</div>
<div> </div>
<div>Despite this lack of faith from economists, consumer sentiment is on the uptick.</div>
<div> </div>
<div>The Finder Consumer Sentiment Tracker™ – established in May 2019 – surveys more than 1,000 Australians each month and among other things, asks consumers a simple yes or no question: do they believe now is a good time to buy property?</div>
<div> </div>
<div>In October, 59% agreed it was a good time to buy property, up from 54% in May.</div>
<div> </div>
<div><strong id="docs-internal-guid-5297ecab-7fff-f2b9-8c6b-de54502d1961"><img src="https://lh3.googleusercontent.com/425R06iHRsilioYVuEpEucV9KGYoEYe2-EU7-VP3lhxeAdb_0kZVcNscMt3VBCTvzJPZk88zH7DZv0jjK_WGUfBYpL5-yKvbQd5GRt2fvc-idwF-yvR4t3BubeiTKaKDez8x9GKQ" width="602" height="333"></strong></div>
<div><strong> </strong></div>
<div>Cooke said consumers are likely responding to the positive news they are seeing about house prices in Australia.</div>
<div> </div>
<div>“Buying property is still considered ‘safe as houses’ in Australia, but it’s taken with a grain of salt in many countries since the global financial crisis.</div>
<div> </div>
<div>“House prices don’t always rise and the economy doesn’t always perform well.</div>
<div> </div>
<div>“We’re seeing house prices now increasing fairly consistently, while other economic factors have not really improved.“This shows that the surge in prices is likely due to cheaper borrowing from three RBA cuts of 2019, rather than an indication of an improving economy,” Cooke said.</div>
<div> </div>
<div>“Nobody knows what’s around the corner, but the chances that this price boost is a dead-cat-bounce seems less and less likely as prices continue to recover,” Cooke added.</div>
<div> </div>
<div>“First time buyers with a deposit saved<span class="Apple-converted-space"> </span>may miss the good-value window if they don’t get into the market soon.</div>
<div> </div>
<div>“If we keep seeing prices increase as dramatically as they’re doing now, the market will have fully recovered within a year,” he said.</div>
<div> </div>
<div>Cooke said the key for anyone looking to save a deposit is to maximise their savings.</div>
<div> </div>
<div>“You’ll find better ongoing rates with smaller banks such as UBank and ING and neobanks such as 86 400 and Up than you will with the bigger banks. A little bit of homework can go a long way to boosting your deposit,” he said.</div>
<div><strong><span> </span></strong></div>
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