The number of Australians intending to buy a home rose in May, following a drop in the previous month, new data shows.
The CommBank Household Spending Intentions (HSI) Index rose 3.1% in May, with home buying intentions up 14.4% over the month after falling by 13.8% in April.
CommBank Senior Economist Belinda Allen noted that seasonal factors played a major factor in the April result, due to the string of public holidays over the month.
“There was a large lift in home loan applications in May”, Allen said.
“However, broader factors are at play”, she added.
“Home prices are rising with strong demand due to rental shortages. New listings and stock on the market are also low, leading to an abnormal situation where home prices are rising as interest rates continue to rise.
“Home prices have now risen for three consecutive months, in March, April and May, and we now expect home prices to rise by 3% in 2023 and 5% in 2024.”
Australians also plan on keeping fit, with the Index showing that ‘health and fitness’ spending intentions rose by 14.9% in May, to be down by just 0.7% over the year. We’re not so keen on paying for entertainment, however, with intentions in that sector down 8.4% in May and 13.1% over the year.
