Last week the Westpac/Melbourne Institute index of consumer confidence rose to its highest level since December 2010. The index is up 7.2 per cent over the year to February. All five key components of the index rose in February.
This is the first big jump in confidence since the RBA commenced its rate cutting cycle and dropped 1.75% over a year or so, but interestingly confidence isn’t at the level it was in previous rate cutting cycles pointing to more subdued growth than might be expected given the current level of interest rates and is good news for home owners and those interested in property investment.
In this short video economist Elliot Clarke from Westpac sums up the latest sentiment survey:
Why is this important for property investors?
The average Australian is now feeling more confident about their future and their job security. This is in part due to the Australian stock market improving and partly due to better news from overseas with Europe working its way through it’s economic troubles and in turn this will lead to more spending.
This will boost our economy and our property markets. In fact that’s already happening with more home buyers and investors attending open homes, putting in offers and buying properties.
With our property markets changing in fornt of our eyes please join me at my upcoming National Property Market & Economic Update seminars around Australia in March and April. Please click here and get all the details and reserve your place now.