Many Australians are reliant on the trajectory of house prices for their future financial stability, according to a new survey.
A ME Bank survey of 1,500 Australians revealed that 43 per cent of the respondents believed that they are “reliant” on future house prices to achieve their financial objectives, with 10 per cent “completely reliant”.
The study found that Australians are divided when asked whether they want house prices to rise or fall, with 38 per cent hoping for an increase while 37 per cent wanting prices to drop.
When broken down by property ownership status, 39 per cent of owner-occupiers and 47 per cent of investors said that they were “reliant” on future house prices “presumably increasing”, with 48 per cent of aspiring property owners also “reliant” but “presumably wanting prices to fall”.
More respondents, however, indicated that they would benefit from a fall in house prices, as only 28 per cent believed that they would benefit by selling if prices rise, while 47 per cent said that they would benefit by purchasing if prices fall.
From the 28 per cent that want prices to fall, 24 per cent were owner-occupiers and 20 per cent were investors. Overall, however, 49 per cent of home owners and 55 per cent of investors wanted prices to rise.
ME home loan expert Patrick Nolan was surprised by the results and noted they are further proof that Australians believe record-high house prices are “unfair”, with 97 per cent agreeing that a price fall would help resolve the housing affordability issues.
“Traditionally, Australians fall into two camps when it comes to property prices: owners who want them to rise, and non-owners who want them to fall,” Mr Nolan said.
“But with high prices disrupting the dream of home ownership and the benefits that brings, views are changing.
“[Property] owners were willing to see asset values fall is a sure sign house prices had reached heights many think are unfair.”
Further, 51 per cent of younger Australians (aged 25–39) said that they were “reliant” on house price trajectory, compared to 30 per cent of older Australians (aged 55–74).