Consumer confidence held steady this week, as both renters and homeowners continue to feel better about the state of the housing market.
According to the latest ANZ-Roy Morgan data, consumer confidence saw a 0.1-point dip to 83.4, while the four-week moving average also edged down by 0.2 points to 83.5.
Confidence among renters continued to rise, despite the fact that rents remain elevated in many regions across the country.
ANZ Economist Madeline Dunk said the stability in overall sentiment was a good thing, however, there are still some issues in the housing sector.
“While ANZ-Roy Morgan Australian Consumer Confidence showed little overall change, we’re seeing different stories emerging across housing segments,” Ms Dunk said.
“Renters are feeling more positive, while mortgage-holders and outright homeowners are relatively flat.
Ms Dunk said that the fact that rental growth is slowing might be giving tenants more confidence.
“Among housing cohorts, renters are now showing a significant boost in confidence, closing the gap with homeowners,” she said.
“On a four-week average, confidence amongst renters is now just 4.2 points below those who own their homes outright.”
The broader economic outlook appeared to be improving, with both short-term and medium-term confidence seeing a six-month high.
However, this was offset by a fall in personal financial sentiment, as current financial conditions dropped by 2.6 points and expectations for future financial situations declined by 3.2 points.
Inflation expectations also eased slightly, decreasing by 0.3 percentage points to 4.6 per cent, with the four-week moving average holding at 4.8 per cent.
Despite ongoing economic challenges and housing pressures, consumer sentiment regarding major purchases improved, with the ‘time to buy a major household item’ subindex rising by 1.7 points.
