Almost two thirds of Australians believe now isn’t the right time to buy property, according to new research by financial comparison site, Finder.
As housing prices continue to rise, the data shows just 35 per cent would consider buying property in the current market.
Finder’s Consumer Sentiment Tracker (CST) is the largest chronological consumer survey in Australia, with 30,230 respondents over the past 2.5 years.
Sentiment towards buying property hits a new low
Finder’s Property Positivity Index shows the number of Australians who think now is a good time to buy property hit its lowest level on record in October 2021.
The index continued its downward trend after hitting its peak in December 2020, when 67 per cent of Australians felt it was a good time to buy property.
Graham Cooke, head of consumer research at Finder, said property price growth was seemingly unstoppable.
“Extended lockdowns and border closures have done little to curb price growth this year,” he said.
“Rock-bottom interest rates and the property boom instilled a fear of missing out among prospective home buyers.
“As we emerge from those lockdowns, a record number of Australians are now pessimistic that now is the time to buy.”
Data from CoreLogic shows house prices are showing no signs of declining, with year-on-year price increases of between 14 per cent and 31 per cent in Australia’s capital cities.
The median house in Sydney now sits at $1.2 million.
Wealth Within’s Dale Gillham said it was always a good time to buy property, but that there were better times than others.
“Low interest rates make the return on investment in borrowing to get into property very attractive right now,” he explained.
However, Shane Oliver of AMP Capital disagreed, noting now was not the time to buy.
“A year ago when prices were still down was a good time to buy, but since then affordability has deteriorated,” he said.
Australians feel negatively about affordability
There has been a notable increase in the number of Australians who feel negative about their ability to afford a home in the future.
In June, the index hit a high of 22 per cent, surpassing its previous high of 17 per cent in April 2020.
Since then the index has not dropped below 19 per cent.
Out of 12 leading economists, 83 per cent believe governments and authorities have a responsibility to address property affordability issues.
Aussie savings in decline
The average amount of money Australians save each month has fallen to its lowest level since before the pandemic.
After a temporary uptick through July and August, average monthly savings hit $688 in September, the lowest level since March 2020.
Mr Cooke said the dip was likely due to the threat of the pandemic slowly starting to pass.
“Once Australians begin to receive more certainty about the future, and with restrictions lifting across parts of the country, we can expect spending to start rising again,” he said.
“The Christmas months traditionally see an uptick in consumption. If Australians are free to travel and socialise for the first time in months this summer, we can expect spending to surge as people make the most of their freedom.”
