House price expectations continued to improve in the March survey and the index is now close to its 2014 high.
The rebound in price expectations has been sharpest in New South Wales and Victoria where capital city prices have had the strongest recovery. But house price expectations are also high in Queensland, South Australia and the ACT. In Western Australia, price expectations are in positive territory but only just.
Of respondents operating in the residential sectors of New South Wales and Victoria, a net 59 per cent and 57 per cent, respectively, expect housing prices to rise in the next year. Across the country, 52 per cent of respondents expect housing prices to rise in 2020 – the strongest result since June 2014.
The extent of the house price rebound has been surprising, particularly given ANZ Research’s view that access to credit is likely to remain relatively constrained because of the number of permanent tightening measures imposed over recent years.
But the combination of pent-up demand and low volumes of properties for sale has added impetus to the price upswing. As the number of listings continues to recover in the first half of 2020, ANZ Research expects the pace of gains to moderate.