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1 in 4 say buy homes now: NAB

New research has found a quarter of consumers believe now is the time to buy a home, while 13 per cent have plans to purchase over the next year.

A new survey from NAB has revealed in the final quarter of 2021, 28 per cent of Australians think now is a good time to attain a mortgage.

Around 13 per cent of Australians have intended to buy a home during the 12 months, the same as the previous quarter.

Western Australians and Tasmanians were the most positive about buying, with 29 per cent and 26 per cent respectively voting it was a good idea.

A quarter (25 per cent) of Victorians were optimistic about buying homes, while only 22 per cent of NSW residents, 21 per cent of Queenslanders, 20 per cent of South Australians and 17 per cent of people in the ACT agreed.

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Meanwhile ACT residents were the most keen to purchase an investment property (30 per cent).

South Australians followed, with 26 per cent thinking now is the time, compared to 24 per cent in NSW, 25 per cent in Victoria, 21 per cent in Queensland, 22 per cent in Western Australia and 22 per cent in Tasmania.

Andy Kerr, NAB executive for home ownership commented house price growth had eased and more supply had come onto the market.

“We currently expect more subdued property price growth in 2022, with gains of around 3 per cent compared to 21 per cent in 2021,” Mr Kerr said.

“However, the market remains competitive and for many Australians buying a home can be a daunting experience.”

Customers have told the bank the amount they’re prepared to borrow is the most important factor in their home-buying decisions.

Inflation hits renovation costs

Recent supply chain disruptions and inflation have boosted both construction and renovation costs.

Only one in three respondents in the NAB survey said now was a good time to renovate, while half of those who were renovating believed it has now become harder to complete a renovation in the last three months.

Three-fifths (60 per cent) of those in the middle of renovating said overhauling their home had become more expensive.

“Regardless of if you’re looking to buy or renovate, it’s important to ensure you can appropriately manage your repayments, both today and in the future,” Mr Kerr said.

“Aussies are among the most active renovators in the world and love to make a home truly their own, but it’s clear rising costs have made it more difficult to budget.

“While many will still pursue renovations this year, it’s incredibly important to have a buffer for the unexpected costs that are likely to pop up.”

But one in five respondents (18 per cent) intended to upgrade their home, while 15 per cent planned to renovate a property in the next 12 months.

Those in the 18 to 29-year-old age bracket were most likely to switch up their home, at 23 per cent of the demographic.

[Related: Borrowers on the ‘brink of financial stress’]

1 in 4 say buy homes now: NAB
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