Australian homebuying intentions back on the rise

An increasing number of Australians believe now is a good time to enter the property market, according to two well-respected surveys.

Commonwealth Bank’s most recent Household Spending Intentions Index found that homebuying intentions in August were 10.0% higher than the month before.

Meanwhile, the most recent Westpac Melbourne Institute Index of Consumer Sentiment report found a 2.9% month-on-month increase in the number of people who thought now was a good time to buy a property.

This increase in homebuying intentions would surprise a lot of people, given that the media is currently reporting a lot of negative news about property. So what’s going on?

Why buyers are ignoring the negative headlines

One reason for the negative commentary is that the market is currently experiencing a downturn, with the nation’s median property price falling 3.4% in the three months to August, according to CoreLogic. However, many buyers see that as a positive, because they know:

• They can now buy a home for a lower price and with less competition

• A correction was inevitable, because prices rose so much, so fast

• Prices are still well above pre-pandemic levels

The second reason for the negative commentary is because interest rates are rising. However, many buyers remain unphased, because they know: 

• Interest rates were always going to rise, after falling to record-low levels as an emergency response to the pandemic

• Rates remain low by historical standards

• While rates are important, the more important thing is being able to enter the market – which you can do if you work with one of the best brokers in Sydney

Further to that last point, Australia’s median property price rose an incredible 382% in the 30 years to July 2022, according to CoreLogic research. That’s despite prices going up and down and rates going up and down during that time. Many buyers realise that the key to winning with property is not timing the market, but time in the market.

That explains why homebuying intentions are now on the rise. 

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