Consumer confidence linked to improving property sector

Those thinking about investing in real estate in the city of Knox should know that consumer confidence is up – a key factor in an improving property industry.

RP Data's Cameron Kusher has examined the level of optimism in the community and found that it will be improving in 2013, which is good news for the housing sector.

He explained: "Although an improvement in consumer sentiment will be an important component to any sustainable recovery in the housing market, respondents to the monthly consumer sentiment survey already feel that now is a good time to buy a home.

"The time to buy a dwelling index was recorded at 140.0 points in January [which] indicates most respondents feel it is a good time to buy a home."

Mr Kusher attributed this optimism to a fall in interest rates, in addition to the fact that most buyers will be spending much less for a property than they otherwise would have a few years ago.

The RP Data expert added that despite a rise in consumer confidence, this has not translated into a greater buyer presence.

This indicates transactions haven't increased, meaning prices haven't risen through increased demand – which signals now may be a good time to enter the market.