Buying a home is usually a common New Year’s resolution, but many Australians report two obstacles stand in their way before they even begin their home search.
Buying property is a common New Year’s resolution, but many Australians are increasingly skeptical about their prospects of reaching this goal in 2022.
New research has shown that soaring house prices have eroded the optimism of home seekers and most believe they have a slim chance of getting an affordable home that they really love.
The CoreData survey, commissioned by Mortgage Choice, found that three-quarters of Australians said they think it was more difficult to scale the real estate ladder compared to a year ago.
A similar proportion of respondents doubted their chances of finding something that ticked all of their boxes while staying on budget.
It comes as real estate market data released by research arm realestate.com.au PropTrack showed house prices rose at the third fastest rate in Australian history in 2021.
Housing values in the capital jumped more than 20 percent during the year, while the average increase in regional areas was 25 percent.
Mortgage Choice and Smartline CEO Susan Mitchell said Australians had mixed feelings about the property market after a year of “staggering” price growth.
“(The growth) this year leaves potential buyers with so few options that many are wondering ‘is the house really where the heart is?’ ” she said.
The rapid rise in prices was also creating a fear of missing out that pushed buyers to settle for properties they could secure, rather than homes they wanted, Ms Mitchell said.
Survey respondents who thought it was more difficult to enter the real estate market said the biggest challenge was housing affordability, which was reported as an issue for 83 percent of participants.
Finding a suitable property within their budget and in a suitable location was a challenge for 64% of Australians surveyed.
Saving for a deposit was an issue for 56% of the study, making it the third biggest challenge facing potential buyers.
The deposit barrier was a particularly daunting problem for buyers, as those without adequate savings had few options – unless they had help from mom and dad’s bank, Ms. Mitchell.
Realestate.com.au’s director of economic research, Cameron Kusher, said the dream of owning a home may drift further away for those not yet in the market.
“Ideally, we should look for strategies that help first-time buyers to own property that also don’t exacerbate price increases,” Kusher said.
“We know that government support measures such as first-time buyer subsidies have a positive impact on the ability of first-time buyers to enter the market, but they are also inflationary, making it more difficult for people to enter the market. the next cohort of first-time buyers. ”