Australians are feeling more optimistic about the housing market: Westpac

Australians are feeling more optimistic about purchasing a home, according to new research from Westpac.

Just over half of all participants suggested that they felt more confident about the housing market than they did 12 months ago, while 53% stated they were eager to take advantage of record low interest rates.

Those who already owned at least one home were the most optimistic demographic, with almost three quarters (71%) feeling more confident about the market than last year, and two thirds (66%) believing now is a good time to purchase their next home.

The primary motivations for those signally an intention to invest in the current housing market were (1) low interest rates (20%), (2) falling house prices (18%), and (3) the desire to live in a new area (17%).

The study also indicates that Australians are significantly more likely to be looking to buy a new home to live in themselves (37%), particularly for the sake of upsizing (24%) – these figures have more than doubled since 2018.

“Record low interest rates have created a positive environment for home owners to not only get ahead on their mortgage repayments, but to also purchase their next home,” said Will Ranken, the general manager of home ownership at Westpac.

The findings showed relief might be on the way with Australian home owners now 50% more likely to sell their home compared to last year, with one in ten (10%) intending to sell in the next 12 months.

“We’ve seen a recent rise in auction clearance rates, so it could be an opportune time for sellers to capitalise on growing demand, particularly in the lead up to spring; the time of year when house hunters tend to be the most active,” said Ranken.

A limitation of investment options was the primary concern of participants in the study, with almost one in five (18%) next home buyers feeling challenged by a lack of property supply listed on the market.