The Westpac-Melbourne Institute consumer sentiment index for May fell 7 per cent to 108 index points. The confidence of respondents with a mortgage fell 8.1 per cent in May compared with average falls of only 2.3 per cent in response to the five previous rate hikes, the survey showed.
So is it a good time to buy a property?
The “Time to Buy a Dwelling” sub index fell 15.4 per cent to 88.2 which, down 35.6 per cent below its long run average.
It has fallen by 40 per cent since its recent peak in August 2009. The Index has only been at lower levels in 2008, 2004 and the early 1990’s.
I simply don’t think it is now a good time to buy because I believe as mentioned before that the property market will correct itself so that the price will drop. As far as I can see, the auctions are still crowded but the sold prices are not going up any further.
If you want to buy, I suggest you to hold for another two or three months – you might be able to get some bargins.