Home buyer confidence up as prices climb: REA Group

The latest Residential Audience Pulse Survey conducted by realestate.com.au has revealed that 35 per cent of respondents still believe that now is currently a good time to buy (January 2024), an increase of 9 per cent when the survey was last conducted in September 2023.

Realestate.com.au confirmed that the sample size of the survey was just over 4,600 realestate.com.au consumers.

This is despite 40 per cent of buyers expressing concern that property prices will increase over the next six months, an increase of 6 per cent compared to September 2023, which has reflected a “growing apprehension among potential buyers”, according to the group.

Observing buyer motivations, the research found that 23 per cent of consumers aged 18 and above are actively looking to buy.

Purchasing reasons varied from the desire to relocate to a different area (ranking the highest at 32 per cent), to making financial gains (18 per cent), downsizing (13 per cent), retirement (12 per cent), and upsizing (12 per cent).

Furthermore, 11 per cent of buyers stated they aim to capitalise on current market conditions, which has highlighted a strategic approach towards property buying.

The survey also examined perceptions surrounding buyer demand over the next few months, which revealed that 32 per cent of buyers are anticipating a lift in demand.

According to the group, this has suggested overall stability in how buyers are looking at the current market, albeit the figure dropped 4 per cent on the previous survey.

In terms of attitudes around interest rates, respondents expressed concern around potential rate rises in the coming months.

Due to the Melbourne Cup Day rate rise, which saw the official cash rate reach 4.35 per cent, 22 per cent of potential buyers were left feeling “very worried”.

However, this was contrasted by 33 per cent indicating no worry at all.

This survey’s results revealing stable confidence have coincided with findings released by major bank Westpac from its recent Home Ownership Report, which revealed 44 per cent of respondents indicated plans to buy a new home over the next five years.

Westpac confirmed this was an increase of 9 per cent since July 2023, with additional increases in those planning to buy an investment at 6 per cent, those planning to upsize (4 per cent), and those planning to renovate (4 per cent).

However, the research discovered a different trend among first home buyers, recording a drop of 3 per cent in Australians planning to achieve home ownership over the next five years.

This was coupled with 86 per cent stating the recent cost-of-living challenges have hampered their home buying intentions.

[RELATED: Major bank reports lift in home buyer confidence]