A survey canvassing consumer thoughts on the state economy has shown that Western Australians are a positive bunch with most predicting the housing market to rebound next year and higher optimism over personal finances and job prospects.
A survey canvassing consumer thoughts on the state economy has shown that Western Australians are a positive bunch with most predicting the housing market to rebound next year and higher optimism over personal finances and job prospects.
The latest Curtin Business School - CCI survey of consumer confidence showed that 80 per cent of the 400 respondents expect the WA economy to gather pace during the year.
Nearly one in three said they were financially better off compared to a year ago, with younger people and those on higher incomes reporting the greatest improvement.
The jobs market continues to improve for Western Australians with more than a fifth of respondents believing their ability to get a job is better than a year ago.
The positive outlook comes despite the end of the federal government's stimulus package and several recent interest rate rises.
The survey results is compares to today's release of the Westpac-Melbourne Institute consumer sentiment index, which rose 0.3 index points in March to 117.3 index, an increase of 0.2 per cent.
Meantime, 75 per cent of the CCI survey respondents expect to see higher property prices by the end of the year.
The survey found that people who earn more than $100,000 were the most optimistic about a housing recovery and were most likely to buy property in the next 12 months.
However, the positive view on the local housing market has again brought to light affordability issues, with more than 40 per cent of respondents saying the high cost is preventing them from buying their own home.
"Ensuring there is enough affordable housing for our rapidly growing population will be one of the biggest challenges facing the State," CCIWA chief economist John Nicolau said.
"With severe labour shortages just around the corner, businesses are concerned that the high cost of housing in WA will discourage many workers moving to WA."
Earlier today, the Australian Bureau of Statistics showed that the number of home loans applied for in January had slumped 7.9 per cent. Market observers were expecting an increase of 2 per cent.
The announcement is below:
A rebound in the Western Australian housing market is just around the corner, with a majority of Western Australians predicting local property prices will rise over the next year.
The latest Curtin Business School-CCI Survey of Consumer Confidence provides good news for current home owners and property investors, but means it will be even harder for some Western Australians to break into the housing market.
The latest quarterly survey, which is the state's only assessment of consumer sentiment, sought the views of more than 400 people across the state.
Three quarters of respondents expect to see higher property prices by the end of the year.
People earning in excess of $100,000 were the most optimistic about a recovery in the local property market, and are most likely to make a purchase over the next 12 months.
People living in the Perth metropolitan area are more confident that prices will rise than those in regional areas.
With housing prices set to rise, the issue of housing affordability is back on the agenda. One third of households said they are not planning to buy property this year because they can not afford to.
Affordability is a big issue for younger Western Australians with more than 40 per cent saying the high cost is preventing them from buying their own home.
CCI chief economist John Nicolaou said, "ensuring there is enough affordable housing for our rapidly growing population will be one of the biggest challenges facing the State. With severe labour shortages just around the corner, businesses are concerned that the high cost of housing in WA will discourage many workers moving to WA."
Despite the end of the federal government's stimulus package and several recent interest rate rises, WA consumers remain upbeat.
Nearly 80 per cent of those surveyed believe the WA economy will gather pace throughout the year, and more optimistic about their personal finances and job prospects. Nationally, consumer confidence has either been flat or declining.
Nearly one in three respondents said that they are financially better off compared to a year ago, with younger people and those on high incomes reporting the greatest improvement.
Meanwhile, the jobs market has continued to improve. More than a fifth of Western Australians believe their ability to get a job is better than a year ago.