Opportunity knocks but first home buyers cautious this Spring

The latest findings from the national RAMS First Home Buyers’ Pulse Check survey released today suggests the majority of first home buyers are more likely to delay entering the property market with only 1 in 8 respondents seeking to purchase their first home or an investment property within the next 3 months.

Now in its 5th consecutive year, the RAMS First Home Buyers’ Pulse Check survey revealed 3 out of 4 respondents said now is a great time to buy however, property affordability still remains one of the biggest barriers to home ownership.

RAMS Chief Executive, Melos Sulicich said the influence of low interest rates is considerable this year compared to last year’s survey results with 32% saying low interest rates have strongly influenced their decision to look for their first property (compared to 21% in 2012).

“When we first introduced the RAMS Pulse Check Survey in 2009, almost 7 in 10 said they had been influenced to enter the market by recent interest rate cuts. First home buyer incentives also attracted new buyers into the market, which in turn helped keep the property market strong, despite the comparatively weak economy immediately following the GFC.

“Today results show more than 75% respondents believe now is a great time to buy with the majority of respondents increasingly motivated to enter the property market to stop paying rent, take advantage of the current low fixed and variable interest rates,” Mr Sulicich said.

“However, now it appears first home buyers are more cautious, taking a ‘wait and see approach’ to purchasing. Many first home buyer respondents still feel buying a home is out of reach due to challenges of saving for a home loan deposit and finding a home in the right location. Results also indicate a fear of unemployment, uncertainty around future earnings and a lack of housing supply are key concerns for this market,” he said.

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