Westpac: Consumer confidence increases nationwide

By the resi financial blog team, 03 October 2013

Consumer confidence in 2013

Consumers are always apprehensive before an election. Uncertainty over the economic future of a country can make large investments seem like a gamble, which is reflected in the attitudes of communities in the lead up.

However, following the recent election, consumer confidence has skyrocketed to an almost three year high while the share market reaches a five year high - fantastic news for anyone looking to purchase property in the near future.

The Westpac-Melbourne Institute Index of Consumer Sentiment has recorded a reading of 110.6 for September, a 4.7 per cent increase from August.

The index indicates the general attitudes towards the economic climate in the country, with a reading above 100 indicating a positive attitude towards the market.

Westpac's Chief Economist Bill Evans said that the general upward trend indicates a growing confidence across the board, with the Reserve Bank's cash rate cuts beginning to take "strong traction" with households across the nation.

"The Index has now increased by a respectable 13.8 per cent since the Bank began cutting rates and it is now 9.9 per cent above its average over the period since that first rate cut," said Mr Evans in a September 11 release.

This increased rate of consumer confidence has been reflected in a number of housing statistics from previous months, including the increasing rates of property commitments across the nation.

The steadily increasing auction clearance rates experienced in Melbourne and Sydney are also indicative of a returning market confidence within Australia's population.

Now could be the perfect time for first home buyers considering purchasing property to take the plunge and enter the market. Getting in contact with a mortgage expert will help you understand your home loan options and aid you in securing a competitive mortgage deal.

Categories: Financial Services, Personal Finance