Only 17 per cent of Australians expect prices will fall over the next year, compared to 28 per cent last quarter.
While 38 per cent expect a rise, compared to 32 per cent last quarter, reports the ME Bank Quarterly Property Sentiment Report, released last month.
A total of 30 per cent expect house prices to stay the same, compared to 29 per cent last quarter.
Respondents across all major cities had a more positive outlook on prices than last quarter. Significantly more people in NSW, Victoria and Queensland are predicting prices to go up, and noticeably more people in the Northern Territory, Tasmania, New South Wales and Victoria are predicting prices will no longer fall.
Positive house price expectations were also seen across all property status types.
ME’s Group Executive Customer Banking Craig Ralston said: “Australians in the property market have become more optimistic about house prices, perhaps reflecting a number of changes in the external environment since the last survey.”
The report still shows a polarised market with 41 per cent feeling neutral about the property market, 33 per cent positive and 26 per cent negative.
However, overall property sentiment remained stable compared to last quarter.