Buy or hold? Aussies happy to be patient for home ownership dream

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New NAB data shows the number of Australians who think now is a good time to buy a home has fallen to 18 per cent in Q2 2022, down from 23 per cent in the previous quarter.

This is the weakest result since the survey began three years ago (Q3 2020). The survey also shows that:

  • Around one in four (24 per cent) Australians currently believe now is a good time to renovate property, down from one in three (32 per cent) in the previous quarter.
  • The number of Australians who thought now was a good time to get a mortgage also fell to one in five (19 per cent) in Q2, down from around one in four (27 per cent) in Q1.

NAB Executive Home Ownership, Andy Kerr said that the housing market was constantly evolving and recent trends have opened up new opportunities for buyers.

“We’re predicting a drop in housing prices of around 18 per cent in the next 18 months which would take us back to January 2021 levels,” Mr Kerr said.

“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.

“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.

“Previously it was the sea change or the tree change – now it’s more of a desk change.

“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.

“We also know that Australians are looking for more information and certainty on what rising interest rates mean for them.

“We’re here to help give people confidence to buy a home and we need to do that responsibly to make sure Australians can repay their loan.”

The state by state breakdown

Is it a good time to buy now?

  • In the ACT, the number who thought now was a good time to buy increased to 27 per cent (25 per cent in Q1), and was highest in the country by some margin. The number who thought so in Tasmania was also unchanged at 15 per cent.
  • In contrast, the number who thought it was a good time to buy a home now dropped in WA to 24 per cent (32 per cent in Q1) and QLD to 14 per cent (20 per cent in Q1).
  • To a lesser extent in VIC to 21 per cent (25 per cent in Q1), NSW to 18 per cent (21 per cent in Q1), and to 14 per cent in SA (17 per cent in Q1).

Is now a good time to renovate?

  • Sentiment remains highest according to around one in three people in Tasmania (33 per cent but down from 44 per cent in Q1) and SA (32 per cent down from 37 per cent in Q1).
  • In contrast around one in four people in all other parts of the country thought it was a good time to renovate, ranging from 22 per cent in NSW to 26 per cent in WA.

Is now a good time to get a mortgage?

  • Fewer Australians in all states think now is a good time to get a mortgage, ranging from around one in four in the ACT (24 per cent) and WA (23 per cent) to just one in seven in Tasmania (14 per cent).
  • Less than one in five in QLD (17 per cent) and VIC (18 per cent), and around one in five in SA (19 per cent) and NSW (20 per cent).

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