The number of Australians who think now is a good time to buy a home has sprung back to 23%, after a survey low of 18% in Q2, NAB research revealed.
The figure is only slightly down from where it was a year ago and follows six straight quarterly declines.
“The housing market, like the broader economy, is proving resilient in 2022,” said Rachel Slade, NAB group executive of personal banking. “The first rate rises in more than a decade have caused concern but signs the pace of rate rises are easing has generated a rebound in confidence through the crucial spring selling season. Surging rental prices are also a factor, both encouraging investors back into the market as well as first home buyers looking to escape rising rents. While we expect prices have further to fall, there are reasons for more optimism than a couple of months ago.”
Renovating has also become more challenging, the research found, with 60% of the respondents undertaking a renovation noting costs were increasing.
The third quarter also saw the number of Australians who think now is a good time to renovate plunge to a new survey low of 21%.
“Inflation and the labour shortage continue to have an impact on home building and renovations,” Slade said. “Most Australians aren’t confident they will be able to renovate in a timely, cost-efficient way, although there is hope price hikes will start to moderate into 2023. Unsurprisingly, it is typically houses that need a bit of love that are struggling to find buyers at the moment, while houses that are move-in ready are often finding strong demand, particularly given the relative lack of supply. We are focused on giving buyers the confidence and support to buy their dream home with fast approvals, while making sure existing homeowners know their options and have help available for anyone worried about rising rates.”
Findings also showed that confidence has lifted across most states, with Victoria in the lead (27%), followed by WA and NSW (25%). The ACT bucked the trend with a 20% buyer confidence level in Q3, after recording the strongest level of buyer confidence in Q2. This was followed by SA (19%) and Queensland (19%), with confidence to buy weakest in Tasmania (18%).
When asked about buying investment property, the number of Australians nationally who thought it was a good time remained unchanged at 21%. The increase was steepest in NSW (24%), followed by WA (21%), VIC (20%) and QLD and SA (18%). Conversely, sentiment steeply declined in the ACT and TAS to just 10%, NAB research showed.
