The Great Australian Dream of owning our home is still strong, new research shows.
A recent survey commissioned by Mortgage Choice has found that despite challenging conditions in a property market defined by rising interest rates, lack of housing supply and a rising cost of living, 4 in 5 Australians (83%) believe property remains a good investment.
The top three reasons are for the confidence include peace of mind and financial security; having control of a physical asset; and good rental returns.
Although the survey revealed that many are delaying big life decisions due to the challenging economic climate, it also showed that most Australians still believe property will provide financial security and strong investment returns.
Mortgage Choice CEO Anthony Waldron said the prospective buyers surveyed were evenly split in their feelings about entering the market this year, with 39% feeling positive about entering the market and 40% feeling negative.
“Interestingly, 21% of prospective buyers said they had both positive and negative feelings, highlighting the tightrope of hope and anxiety those trying to enter the property market are currently walking”, he said.
Waldron suggests consulting a mortgage broker to see how your borrowing power might be affected by further changes to interest rates, to understand whether fixing your loan may be a good option and, if you’re a first-time buyer, whether you might be eligible for a grant.
As for vendors, the survey revealed that those looking to sell their properties are the most upbeat about the market.
Over half of the survey respondents who are actively selling their property feel optimistic about selling. They are also much more likely to think interest rates will drop by the end of 2023, compared to the rest of the market, with 32% of sellers saying they think interest rates will fall, compared to 19% of all mortgage holders surveyed.
The survey results align with data from PropTrack, which indicates that the Spring selling season started early this year. The data reveals that auction activity picked up markedly over August, with more than 2,000 homes headed to auction as seller confidence continues to recover.
With interest rates at or close to their peak, buyer confidence is returning, prices are rising, and clearance rates have improved, leading more vendors to consider selling at auction.
