- Australians do not feel that now is a favourable time to buy property, according to a new study from Finder, as prices continue to skyrocket
- According to new research from October 2021, little over a third (35 per cent) of Australians feel now is the time to purchase, down from 40 per cent in September
- There has been a significant increase in the number of Australians who are highly pessimistic about their future capacity to purchase a home, the survey showed
- Out of 12 economists surveyed, 10 agree that governments and authorities have a duty to solve housing affordability concerns
Australians do not feel that now is a favourable time to buy property, according to a new study from Finder, as prices continue to skyrocket.
According to Finder’s Property Positivity Index, the number of Australians who believe now is a good time to buy property reached its lowest level on record in October 2021.
The index, which started 2.5 years ago, continued to fall after peaking in December 2020, when 67 per cent of Australians thought it was a good time to buy property.
According to new research from October 2021, little over a third (35 per cent) of Australians feel now is the time to purchase, down from 40 per cent in September.
According to Finder head of consumer research, Graham Cooke, home price rises appear to be inexorable.
“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.”
According to CoreLogic data, house prices in Australia’s main cities are increasing at a rate ranging from 14 per cent to 31 per cent year on year. Sydney’s median property price is currently $1.2 million.
According to Wealth Within chief analyst Dale Gillham, it is always a good time to buy property, although certain periods are better than others.
“Low interest rates make the ROI in borrowing to get into property very attractive right now,” he said.
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.
There has been a significant increase in the number of Australians who are highly pessimistic about their future capacity to purchase a home.
The negativity about the property affodability index reached a high of 22 per cent in June, exceeding its previous high of 17 per cent in April 2020. Since then, the index has never fallen below 19 per cent.
Out of 12 economists surveyed, 10 agree that governments and authorities have a duty to solve housing affordability concerns.