New research from NAB has suggested that the biggest issue facing those buying property in Australia is now the amount that they are required to borrow to get on to the market.
Seventy-four per cent (74%) of survey respondents listed financing as their major concern, ahead of the local area of the property, their preference for a house over an apartment, and the size of the property.
The data reflects a wider trend in the market, which has seen prices rise precipitously and a raft of changes to the lending market, notably the new buffer criteria announced in October and the succession of interest rate rises that were seen at the end of the year.
Alan Kerr, NAB executive, home ownership, said that the study showed how consumer preferences had changed over the course of the pandemic.
“The trade-off between affordability and lifestyle has changed markedly throughout the pandemic, with choices around CBD proximity, additional space and price fluctuating over the last two years,” he said.
“It’s really important to look to the future for your lifestyle preferences to ensure the short-term hunt for value is the right choice for you long-term.
“Through this competitive housing market, we’ve also seen the confidence provided by fast decisions is critical in reducing stress and supporting customers into their dream home. Eighty per cent (80%) of our customers are now provided a decision within a day.”
Kerr added that the housing market was rebounding after a slowdown as more listings become available.
“In December, we saw the first month-on-month fall in Melbourne housing values since October 2020 while price growth in Sydney and Perth continued to flatten,” he said.
“New data this week showed us that house prices are starting to ease in 2022 and already we have seen more supply come on to the market.
“We know that lockdowns have reshaped how we live with many at home for longer periods. However, what we are now seeing is little green shoots of people returning to inner-city suburbs, looking for the balance of lifestyle and value as cities like Melbourne and Sydney have opened up. This has been aided by more subdued price growth in these areas.”
