Consumer sentiment rises to pre pandemic levels and that’s good for property

Consumer sentiment rises to pre pandemic levels and that’s good for property

Consumer sentiment has risen again and is now well above pre-pandemic levels.

In fact it’s the highest it’s been since November 2013 according to the NAB.

These findings are in line with ANZ Roy Morgan’s weekly consumer confidence index which is reason for the 10th consecutive week and the consumer sentiment survey results announced by Westpac

 

Key findings

Consumer sentiment rose again in November, up 2.5% to 107.7, and is now at its highest level since November 2013.

Compared to prior downturns, the recovery in consumer sentiment is the sharpest seen in the history of the series and reminds of the unusual nature of this shock and the extensive government support provided to households (and businesses) Consumer Confidence 2

This month’s rise was driven by Victoria, where confidence lifted 9.0% to 111

Consumer Confidence 3 Such a rise in confidence is no doubt due to the comprehensive re-opening in Victoria during October (the survey period was November 2-6).

googletag.cmd.push(function() { googletag.display(‘div-gpt-ad-1591951428937-0’); });

Business confidence also rose strongly in Victoria in the NAB Business Survey released yesterday.

It will be interesting to see what impact the sharp lift in confidence may have on activity in Q4 as the phasing back of JobKeeper and JobSeeker also occurs.

The Consumer Confidence survey typically does not give a strong indication of consumer spending trends, but last month signalled a positive reaction to the budget’s income tax cuts and this month likely reflects Victorian reopening, which will boost activity in that state in the near term.

Retailers continue to report the strongest business conditions of any business in the NAB survey, so the broad messages align between the two surveys.

More Details:

Consumer confidence rose 2.5% in November to 107.7.

The sub-components were mixed, though with the levels still being healthy overall.

Expectations for the economy lifted further with the 1yr ahead expectation +8.4% and 5yr ahead +0.2%. In contrast, family finances were flat to lower with family finances v. a year ago -3.2% and for the year ahead +0.2%).

Consumer Confidence 4
Encouragingly for retailers, there was another sharp rise in the time to buy a major household item, +6.7% to 121.3.

Historically, the time to buy a major household item and family finances have had a reasonable but low correlation with durable goods consumption.

On housing, the survey reports improving sentiment among consumers with another sharp rise in the “time to buy a dwelling’, up +8% to 132.0.

House prices appear to have stabilised in recent months.

Consumer Confidence 5 Consumer Confidence 6

Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on

Metropole

If you’re wondering what’s ahead for property you are not alone.

You can trust the team at Metropole to provide you with direction, guidance, and results.

In “interesting” times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award-winning team at Metropole.

If you’re looking at buying your next home or investment property here’s 4 ways we can help you:

  1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now!  This will give you direction, results and more certainty. Click here to learn more
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3.5 Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property.  Click here to learn how we can help you.
  3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
  4. Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.

googletag.cmd.push(function() { googletag.display(‘div-gpt-ad-1592314976732-0’); });