Is now a good time to buy or sell a home? Despite what the headlines say, the answer can vary widely, depending on the neighbourhood, quality and style of the property. Even in the most depressed market, people continue to move around and need a place to live.
New Westpac research has found while some Australians are concerned about affordability, house prices and interest rates, they nevertheless remain committed to their long-term property goals.
Findings from the latest Westpac Home Ownership Report have found two in five (41 per cent) think now is a bad time to buy a first home and almost half (47 per cent) think now is a bad time to sell a property. Further, three quarters (75 per cent) are holding off on buying a property until prices fall more and 73 per cent are delaying a purchase until interest rates stabilise.
Despite these concerns, four in five (79 per cent) first home buyers feel more motivated to buy a property now compared to 12 months ago and more than half (55 per cent) intend to make a housing change in the next year. This includes plans to renovate their home (19 per cent), buy a first or new home to live in (15 per cent), buy an investment property (8 per cent) or sell a home (6 per cent).
Housing affordability remains the biggest factor influencing property decisions (40 per cent), followed by interest rate uncertainty (32 per cent) and falling property prices (30 per cent).
Westpac Chief Executive, Consumer, Carolyn McCann suggests Australians aren’t abandoning their property ambitions altogether, but feel conflicted about the current market.
"We’re not seeing a mood of crisis, rather a mood of concern”, she says, adding that the market has paused as people try to make sense of conflicting signals around interest rates, house prices, cost-of-living pressures and the broader economy.
"While we’ve seen a downturn in mortgage applications of around five per cent since May, activity is beginning to recover with applications up 15 per cent from the July low.
"People still want to buy and sell property, but many are seeking greater certainty before making a move. The challenge is that waiting for the perfect moment can mean missing opportunities that are right in front of you.”
The hesitation is also being fuelled by ongoing supply constraints, with 31 per cent of Australians saying there either aren't enough properties available, or those that are on the market don’t meet their needs.
However, the findings suggest that while confidence has softened, Australians remain committed to their long-term property goals. Confidence in property as a long-term investment remains strong, with four in five (81 per cent) Australians agreeing that owning a property remains the best way to build wealth.
Buyers are also actively adjusting their strategies in response to changing market conditions, identifying an opportunity to make lower offers (19 per cent), revise their deposit target (17 per cent) or consider suburbs previously outside their budget (16 per cent).
"Market conditions will continue to change, but for many Australians the dream of owning a home remains as strong as ever – an aspiration that’s underpinned by a belief that property remains one of the best ways to build long-term wealth,” McCann said.
"The reality is that property decisions are rarely driven by just one factor. Buyers who are financially prepared and have found a property that meets their needs should focus on their long-term goals rather than dwell on predicting every market movement”, she concluded.