Housing sentiment collapse: Survey shows biggest monthly fall in 47 years

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PHOTO: Australians have lost confidence in the property market as house price expectations suffered their biggest monthly loss, according to Westpac. Photo: Peter Rae

Confidence in the Australian housing market has collapsed, with a Westpac consumer survey recording the single biggest monthly fall in its 47-year history.

The survey, which measures Australian consumer sentiment, saw house price expectations and “whether it is the time to buy property” plunge, as the effects of coronavirus hit hard and fast.

The “time to buy a dwelling” index dropped 26.6 per cent – the biggest monthly decline on record. But at 82, the index is still above the GFC low of 67.1.

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Meanwhile, the “price expectations” index dropped by 50.8 per cent to 69.7 in April, a fall nearly four times bigger than the largest monthly decline since Westpac began including that question in 2009.

Westpac chief economist Bill Evans said the latest survey results confirmed that the effects of coronavirus had well and truly reached the Australian property market.

“It indicates that the confidence around the economy, spending and jobs is spilling over into housing,” Mr Evans said. “Confidence around purchasing has taken a [major] hit.

“I found that somewhat disturbing and surprising. It has heightened the negativity about the price outlook.”