Media Release | Westpac-Melbourne Institute Consumer Index April 26

Following today's release of the Westpac-Melbourne Institute Consumer Index, the following statement can be attributed to Oliver Hume Property Group Chief Economist, Matt Bell.

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Westpac-Melbourne Institute Consumer Sentiment Property sub-index results have come out as the only potential positives of a very weak April result.

• House Price Expectations Index down -10.2%
• Time to Buy a Dwelling Index up 3.5%
• Interest Rate Expectations Index up 3.9%

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House price expectations index fell more than 10 points, but remains at the same level as in April 2025.  And directly related to this easing of price growth expectations, Time to buy a dwelling was really the only component of the Index to rise with consumers feeling that easing price growth expectation might provide the opportunity to enter the market.

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The indicators around mortgage rates and house price expectations fell.  Forty percent of survey respondents expect rates to rise over 1% in the next 12 months.  Markets currently have only ~0.5% of rate rises fully priced in, so there may be some silver lining for those consumers who are most pessimistic.

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Overall though, the Westpac-Melbourne Institute Consumer Sentiment Index fell heavily across the board in April, reflecting the weekly measures that have been printing over the last month.

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Maybe the most concerning sub-component move was the unemployment expectations index jumping nearly 10%.  Nothing makes a consumer hold off on the biggest purchase of your life (property) like the fear of losing your job.

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The completely expected weak reading of consumer sentiment and provides good reason to be concerned about June quarter residential market activity.  The weak auction clearance rate results so far for April are going to flow through to softening house price growth and lower transaction activity in the established and new markets.

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As with everything impacted by the Middle East Crisis, it all depends on how far away the resolution (any resolution!) is.

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ENDS

Media enquiries to:

Mitchy Koper

• Oliver Hume
• m.koper@oliverhume.com.au
• 0417 771 778

or

Lilly Mackay

• Oliver Hume
• l.mackay@oliverhume.com.au