Less than 20% think now is a good time to get a mortgage: NAB data

According to new data from NAB, just 19 per cent of Australians think now is a good time to get a mortgage.

The survey - which covers the second quarter of the calendar year 2022 - found that less than one in five thought the last quarter was a good time to take on home loan debt, down from 27 per cent in the first quarter of the year.

While almost one in four respondents from the Australian Capital Territory (24 per cent) and Western Australia (23 per cent) believed it was a good time to obtain home loan finance, just one in seven Tasmanians (14 per cent) felt the same way.  

The data echoes that from Equifax's latest Quarterly Consumer Credit Demand Index, which found mortgage demand in Australia fell by 4.6 per cent between the March 2021 and March 2022 quarters. 

Similarly, 18 per cent of Australians said they think now is a good time to buy a home – down from 23 per cent in the first quarter of 2022, and marking the weakest result since NAB began surveying consumer attitudes toward buying properties three years ago.

Potential purchasers in the Australian Capital Territory were found to be the most enthused at the prospect of home ownership, with 27 per cent of respondents in the territory believing now is a good time to buy – a 2 per cent lift from 25 per cent in Q1.

It was the only state or territory to see a lift from the previous reporting period.

Western Australian sentiment was down at 24 per cent from 32 per cent in Q1, Queensland dropped 6 per cent to 14 per cent, Victoria saw positivity drop 4 per cent from 25 per cent in Q1 to 21 per cent, NSW's sentiment was down 3 per cent to 18 per cent, and South Australia dropped from 17 per cent to 14 per cent.

NAB executive, home ownership, Andy Kerr, said the apprehension coincides with the bank’s forecasts for an 18 per cent drop in prices in the next 18 months – “which would take us back to January 2021 levels”.

Even so, it’s not all bad news, according to Mr Kerr, with new opportunities now on the table for many buyers.

“With a combination of house prices declining and the recent release of the First Home Guarantee Scheme, it will renew optimism for first home buyers.”

“So despite rising rates, we’re still seeing a steady intention of people looking to buy, even if sentiment is showing us that buyers may wait a little longer,” he shared.

The data is also showing that buyers are now looking at suburbs they previously wouldn’t have – citing the “desk change” for the alteration to demand – rather than the sea change or tree change seen in years gone by.

“New flexible working arrangements have allowed buyers to buy in suburbs that in the past would not have worked for full time commutes to the city,” Mr Kerr said.

“In the last 12 months, we are seeing more people buying in outer suburbs where it is more affordable and there is a train journey to the office for when they need to be there.”

[Related: Mortgage demand sinks for first time since 2019]