A landmark study* by leading mortgage broker Aussie has revealed only one third of Australians are more confident about buying a home than they were five years ago, despite record low interest rates and lower property prices in many areas.
According to the survey of more than 2,000 Australians, 68 per cent of respondents who identified as first home buyers (FHBs) are not confident in the Australian housing market, with 79 per cent of FHBs believing that buying a home is harder than ever. Just 20 per cent of FHBs plan to purchase a property in the next year.
David Smith, Chief Customer Officer at Aussie, said “Our study exposed that a majority of Australians show a worrying lack of confidence in the future of the housing market and their ability to finance a purchase.”
“It’s a shame to see that due to this lack of confidence only one third of Australians are taking advantage of the market uptake when this could be a prosperous time for more homebuyers”.
Meanwhile 48 per cent of investors are confident in the Australian housing market, with this number jumping to 61 per cent for those looking to invest in the next 12 months.
The research also found that 40 per cent of men are confident in the housing market, compared to only 29 per cent of women. The generations also held differing views when it came to confidence in the housing market; only 29 per cent of Gen Xs stated they are confident, compared to 36 per cent of Gen Z and Millennials, while just 38 per cent of Baby Boomers declared confidence in the market.
“The research shows that most generations don’t hold much confidence in the property market, with Gen Xs, that is, those born in the 1960s to 1980s, having the least amount of confidence. With the housing market changing so rapidly across the country in recent years, it’s likely Gen X were the generation most affected by this volatility, which could explain their lack of confidence.
“With affordability and market volatility an ongoing issue over the past few years it’s no surprise so many lack market confidence. Housing prices have been decreasing nationally over the past 20 months leading to a buyer’s market, and with the market starting to stabilise, now could be the time to take action, whether you’re looking for your first home, next home or an investment property. An Aussie broker can cut through all the confusion and navigate the process for buyers, and can also provide free suburb and property reports to help customers feel informed about their local market,” he added.
*The survey was conducted by Lonergan Research among 2,079 Australians aged 18 years and over. Fieldwork commenced on Wednesday 28 June 2019 and was completed on Tuesday 7 July 2019. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.