More than two thirds of Australians believe the housing market is vulnerable to a correction - but most aren't expecting it just yet.
Sixty eight per cent of people surveyed for a CoreLogic RP Data - TEG Rewards Housing Sentiment Survey answered "yes" when asked: "In your opinion is Australia's housing market vulnerable to a significant correction in values?"
Those choosing "no" made up the other 32 per cent.
CoreLogic RP Data head of research Tim Lawless had some sympathy with the minority view.
"While we don't envisage dwelling values will fall substantially, the probability of declines in Sydney, and to a lesser extent in Melbourne, after such a strong run of capital gains isn't unlikely," he said.
Despite the assessment that the market is vulnerable to a fall, 41 per cent of respondents expect prices to rise over the coming year, down only a little from 45 per cent in both the June and March surveys.
The latest CoreLogic RP Data report on housing prices showed annual rises averaging just over 10 per cent over the year to October.
But only three per cent of those expecting prices to rise - only a little more than one per cent of all those surveyed - expect capital gains of 10 per cent or more.
The survey showed 42 per cent expect prices to be stable, while 16 per cent expect the market to fall - barely a third of those expecting prices to rise.
Only seven per cent of the pessimists, or around one per cent of the total number surveyed, expect falls of more than 10 per cent.
Share
