Cooling Price Expectations Create Window for Homebuyers

Homebuyer sentiment has improved marginally as expectations for house prices over the next 12 months have fallen by 10.2%. This shift in sentiment is reflected in the 'time to buy a dwelling' sub-index, which rose 3.5% to 85.8. The improvement was largely driven by higher-income, younger buyers in 'mortgage belt' regions. These buyers are typically younger than the national median age and possess higher incomes than the typical household. This sentiment shift occurs as the national median home value reaches $908,000, a figure 9.4% higher than 12 months ago. The broader Westpac-Melbourne Institute Consumer Sentiment Index fell 12.5% in April to 80.1, driven by surging fuel costs and fears of interest rate rises. Property price expectations have cooled, though over two-thirds of those with a view still expect an increase over the next year, while only 12% expecting a fall. The national median home price is 9.4% more expensive than 12 months ago.