Consumer Sentiment dropped to COVID lows
The monthly consumer sentiment index from Westpac and the Melbourne Institute released earlier this month showed a stark drop through November. There is an explicit correlation between consumer attitudes and housing activity. With household confidence at a low, it makes it much harder to make a high-commitment decision such as buying or selling a home. We do expect this to rebound sharply, however, once the RBA pauses their rate hikes, which is expected as early as March.