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A recent survey showed that more than two thirds of Australians are concerned the national housing market could suffer a significant correction in values.
The survey, conducted in September by CoreLogic RP Data and TEG Rewards, found that 68 per cent of respondents believed Australia’s housing market is vulnerable to a significant correction, down from 75 per cent in the previous quarter.
According to the report, despite marked improvement in consumer perceptions, a significant proportion of the community is wary of substantial value falls across the nation’s largest asset class, which CoreLogic RP Data estimates is worth $6.2 trillion.
CoreLogic RP Data head of research Tim Lawless said dwelling values are unlikely to fall substantially; however, declines in Sydney and Melbourne after strong runs of capital gains are probable.
“Home values are already trending lower in Darwin and Perth. It was less than three and a half years ago that capital city dwelling values fell by 7.4 per cent between October 2010 and May 2012,” he said.
The survey also found that 95 per cent of respondents believe foreign demand is pushing housing values higher, with 19 per cent indicating that foreign buyers were responsible for placing ‘extreme’ upwards pressure on home values.
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