House price movement is worrying recent buyers most: ME bank

House buyers who purchased in the past three years, particularly in Sydney and Melbourne, are the most worried by recent falls in house prices, according to a recent survey by home loan lender ME bank. 

The survey of 1,500 respondents indicated there may be a flow on to effect consumer spending.

Those who made purchases more than three years ago not as worried about owing more than their property is worth, 27% compared to those who bought property in the past 36 months of whom 62% say they are concerned.

Half of the respondents said falling prices made them feel less wealthy, while 73% said they would be more careful with their money in future.

Those who think prices will go up outnumber those who think prices will fall in every states except NSW, demonstrating that the recent turn in prices has had an effect on consumer sentiment.

ME’s head of home loans Andrew Bartolo sai,: “There’s little point worrying about what will happen to prices short-term if you’re intending to live in a property long-term. Same goes for long-term investors.

“Those looking to borrow should ensure they have a strong savings history, a deposit over 20%, and can demonstrate they can keep their levels of expenditure to low levels long-term,” he advised.