Strong consumer confidence has far-reaching implications for various parts of the economy, including the property sector. There could soon be a rise in interest for real estate in Adelaide on the horizon, as results of the latest ANZ-Roy Morgan Consumer Confidence Index are released.
The groups revealed that during the week to 18 August, confidence improved 0.6 per cent throughout the country. There were two main indicators that saw major increases compared to the previous week – finances compared to a year ago (1.7 per cent) and the medium-term economic outlook (8 per cent).
However, declines were registered in people's perceptions of their future finances, economic conditions in the coming 12 months and whether or not now is a good time to purchase a household item.
Chief economist at ANZ Warren Hogan noted that the index had steadily improved over the past few weeks. There are now concerns over whether this recent growth can be sustained for much longer.
"While concerns around the Greek debt crisis and volatility in the Chinese equity markets worried consumers just a few weeks ago, confidence has remained broadly steady in the face of last week's Chinese exchange rate devaluation, possibly due to the fact that the Australian dollar ended the week largely unchanged," said Mr Hogan.
This follows the release of the latest Westpac-Melbourne Institute Consumer Sentiment Index, which also pointed to a rise in confidence. Between July and August this year, the index marked an increase of 7.8 per cent, which analysts asserted was unprecedented.
Westpac chief economist Bill Evans suggested that major economic events such as interest rate changes and Commonwealth budgets usually lead to this sudden shift in sentiment. However, neither of these have occurred in recent months.
If you're hoping to make the most of this recent upswing in confidence and buy real estate in Adelaide, then don't delay with getting in touch.