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The number of Australians who believe it’s a good time to buy property has dropped by 5 per cent in just three months.
According to new data from NAB, just 18 per cent of Australians say it’s now a good time to buy a home — down from the 23 per cent of people who said the same after Q1, and the weakest result since NAB began surveying consumer attitudes towards buying property three years ago.
Potential purchasers in the ACT are most enthused at present, with 27 per cent of respondents in the territory believing now is a good time to buy — a 2 per cent lift from 25 per cent in Q1.
It was the only state or territory to see a lift from the previous reporting period; West Australian sentiment is down at 24 per cent from 32 per cent in Q1, Queensland dropped 6 per cent to 14 per cent, Victoria has seen positivity drop 4 per cent from 25 per cent in Q1 to 21 per cent, NSW’ sentiment is down 3 per cent to 18 per cent, and South Australia dropped from 17 per cent to 14 per cent.
Painting a negative picture of consumer sentiment when it comes to property, the changing market conditions have also had an impact on the willingness of would-be home owners to take out a mortgage.
While almost one in four respondents from the ACT (24 per cent) and Western Australia (23 per cent) believe it’s a good time to obtain finance, just one in seven Tasmanians (14 per cent) feel the same way.
NAB executive home ownership Andy Kerr said the apprehension coincides with the bank’s forecasts for an 18 per cent drop in prices in the next 18 months — “which would take us back to January 2021 levels”.
Even so, it’s not all bad news, according to Mr Kerr, with new opportunities now on the table for many buyers.
“With a combination of house prices declining and the recent release of the First Home Guarantee Scheme, it will renew optimism for first home buyers.
“So despite rising rates, we’re still seeing a steady intention of people looking to buy, even if sentiment is showing us that buyers may wait a little longer,” he shared.
The data is also showing that buyers are now looking at suburbs they previously wouldn’t have — citing the “desk change” for the alteration to demand — rather than the sea change or tree change seen in years gone by.
“New flexible working arrangements have allowed buyers to buy in suburbs that in the past would not have worked for full time commutes to the city,” Mr Kerr said.
“In the last 12 months, we are seeing more people buying in outer suburbs where it is more affordable and there is a train journey to the office for when they need to be there.”
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