Confidence rises nationwide, led by Victoria and ACT
Australia’s housing market is showing renewed confidence as it moves into spring, according to the latest research findings from NAB.
The NAB Residential Property Index, which measures housing market sentiment, climbed to +44 in the June quarter, marking its highest point in a year.
Sentiment improved across all states and territories. Victoria recorded the largest increase, with the index rising from +16 to +36. The Australian Capital Territory also returned to positive territory at +30, following two consecutive quarters in the negative.
Market confidence rose by 11 points to reach 62, the highest level observed in over 12 months.
NAB attributed the improvement in housing market sentiment to recent interest rate reductions and expectations of further monetary policy easing.
“Spring is traditionally the busiest time of year for property sales, and this year is shaping up to be no exception,” said Denton Pugh (pictured right), home lending executive at NAB.
“With recent rate cuts and confidence returning, we’re seeing more Australians, especially first-home buyers, taking steps towards buying a home.
“It’s encouraging to see optimism returning – Victoria and the ACT are standouts when it comes to buyer confidence right now, but we expect other states to follow.”
Surveyed real estate professionals and developers reported that first-home buyers now represent 34% of prospective purchasers, the highest proportion since 2022. Victoria led in first-home buyer interest during the June quarter at 40%, with New South Wales following at 36.4%.
For mortgage brokers, these trends indicate greater demand for lending advice and services as more buyers enter the market. Increased competition among lenders may also provide brokers with a wider range of products to offer clients.
“With more homes expected to hit the market and eager buyers returning, spring is shaping up to be a season of opportunity,” Pugh said.
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