The number of first-time buyers looking to get into the property market is rising sharply, according to a new survey of real estate sentiment.
The Quarterly Property Sentiment Report by ME Bank reveals that the home ownership aspirations of FHBs are very much alive.
Compared to the second quarter of 2019, when only 38% of FHBs intended on buying property, first-timer activity has jumped dramatically, with 51% of FHBs planning to buy property in the next 12 months.
The change coincides with the 1 January launch of the Federal Government scheme to help FHBs get a first loan with a deposit of 5% without mortgage insurance.
But ME’s general manager Andrew Bartolo suggests rising prices have created a “better get in quick” attitude among young buyers.
“The recent property price recovery has likely nudged them to get in while they can – as though it’s ‘now or never’ – and has created a sense of FOMO,” he says.
“Low interest rates and commentary in the market for the support of FHBs may have also contributed to an increase in home-buying intentions.”
The survey also reveals that most respondents expect prices to rise in 2020 – with 55% expecting price increases over the next 12 months, compared to 38% who felt this way three months earlier.
The survey of 1,000 Australians in the property market took place in at the start of January.
