The GFC is now a 'distant memory for most Australians' according to the latest MFAA/Bankwest Home Finance Index.
Having canvassed the opinions of 850 people on a range of issues relating to the economy and housing market, it found that nearly three quarters (73%) expect house prices to rise.
Phil Naylor, CEO of the MFAA, called the result "surprising" and said it was the "highest proportion for more than three years".
"Confidence in the housing market is not only pre-GFC - it's back where it was during the height of the housing boom," Naylor said.
"But there are still some clouds on the horizon, with recent interest rate increases negatively impacting households," he said.
The survey found that 15.9% of respondents are struggling to meet repayments -up from only 11.7% in May 2009 with the highest proportion (25%) of strugglers in WA.
The least number of people struggling to meet repayments were in NSW (20.6%).
Property markets across Australia have had a solid bounce back in capital growth of *12.2% during 2009. This has been partly fuelled by the FHOG Boost & FHOG + other state incentives. With rental properties becoming scarce as hen's teeth, people are understandably looking to buy owner occupied property if they are in a position to do so. However we have a massive shortfall in supply of approx. ^70,000 units Australia wide. This is the main driver of capital growth in Australia right now. This kind of capital growth coupled with strong rental returns + historical lows in vacancy factors could also mark 2010 as the year of the Property Investor. 2010 could well & truly become the year of the Tiger for Property Investors. To discuss strategies & finance options in acquiring the great Australian dream, don't hesitate to call the Mortgage Blitz team on 1300 725 489.
* Based on the average of the 3 leading Australian Property research houses RP Data/Rismark International 11.0%, Australian Property Monitors (APM) 12.1% & Australian Bureau Of Statistics (ABS) 13.6%.
^ ANZ Australian Property Outlook Report
The ANZ estimates that underlying housing demand is running at an annual rate of 200,000 while dwelling completions are expected to be below 130,000 in 2009-2010.
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