The number of Australians who think now is a good time to buy a home has fallen to 18% in Q2 2022, down from 23% in the previous quarter, new NAB data has revealed.
NAB said it was the weakest result since the survey began three years ago (Q3 2020).
The survey also found that 24% of Australians believe now is a good time to renovate their property, down from 32% in the previous quarter. Meanwhile, the number of Australians who thought now was a good time to secure a mortgage fell to 19% in Q2, down from 27% in Q1.
Andy Kerr, NAB executive home ownership, said recent trends in the ever-evolving housing market have opened up new opportunities for buyers.
“We’re predicting a drop in housing prices of around 18% in the next 18 months, which would take us back to January 2021 levels,” Kerr said. “With a combination of house prices declining and the recent release of the First Home Guarantee Scheme, it will renew optimism for first-home buyers. So, despite rising rates, we’re still seeing a steady intention of people looking to buy, even if sentiment is showing us that buyers may wait a little longer.”
Kerr also noted that new flexible working arrangements have allowed buyers to buy in suburbs that in the past would not have worked for full-time commutes to the city.
“Previously it was the sea change or the tree change – now it’s more of a desk change,” he said. “In the last 12 months, we are seeing more people buying in outer suburbs where it is more affordable and there is a train journey to the office for when they need to be there.”
Across the states, the Australian Capital Territory has seen the highest increase in the number of Australians who thought now was a good time to buy, rising to 27% from 25% in Q1. The number who thought so was unchanged in Tasmania at 15%. In contrast, there was a decline in the number of Australians who thought it was a good time to buy a home in Western Australia to 24% (down from Q1’s 32%) and in Queensland to 14% (20% in Q1) and to a lesser extent in Victoria to 21% (25% in Q1), New South Wales to 18% (21% in Q1), and to 14% in South Australia (17% in Q1).
Asked whether they feel now is a good time to renovate, sentiment remained highest in Tasmania at 33% (but down from 44% in Q1) and SA at 32% (but down from 37% in Q1). On the other hand, around one in four people in all other parts of the country thought it was a good time to renovate, ranging from 22% in NSW to 26% in WA.
When it came to now being a good time to secure a mortgage, just around one in four in the ACT (24%) and WA (23%) to just one in seven in Tasmania (14%) thought so; while fewer than one in five in Queensland (17%) and Victoria (18%), and around one in five in SA (19%) and NSW (20%) held the same belief, NAB data showed.
