Buoyant housing market at odds with weak economy

Rental property in tenant market

“Key parts of Australia’s economy are starting the year looking weak, but the housing market is one glaring exception.

There are early signs the first few weeks of 2020 have been strong for property, with two consumer surveys by banks last week showing people were becoming more bullish about bricks and mortar.

Commonwealth Bank said its survey of home-buying intentions had reached a record high. Westpac’s survey of consumers also said house-price expectations had soared by a “staggering” 58 per cent in the past year, despite an overall slide in confidence this month.

After rapid house-price gains late in 2019, market researcher CoreLogic said Sydney and Melbourne prices rose by another 0.7 per cent in early January, pointing to a strong opening month.”

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