More Aussies have said they intend to buy a new home in 2021 compared to the last quarter of 2020, new NAB data shows.
Despite widespread expectations for strong house price growth to continue, the number of Australians who said they intend to buy a home in the next 12 months increased slightly to 15 per cent in Q1 2021 (up from 13% in Q4 2020).
The number of Australians who said they intend to buy an investment property in the next 12 months also increased to 9 per cent (from 8% in Q4 2020).
NAB Executive, Home Ownership, Andy Kerr said the appetite for Australians looking to buy a new home was at an all-time high.
“Young Australians are the most aspirational home buyers right now and we’re seeing this with 25 per cent of applications now done via video, with thousands more booked online every month,” Mr Kerr said.
“Over the past year we have seen record demand from first homebuyers with NAB lending increasing by 67 per cent compared to 2020.
“NAB is proud to support customers interested in buying their first home through the First Home Loan Deposit Scheme (FHLDS). Demand remains strong and we’ve now supported 6,350 customers to purchase their first home through the FHLDS.
“The health and financial shock of the pandemic drove a decline in investor interest last year. This year we have seen the return of investors as economic conditions have improved.
“Right now, our variable rates for property investors are our lowest ever advertised rates.
“We also know price is just one factor when getting a home loan and continue to simplify and improve the home lending experience for all our customers.
“This includes faster decision making, with a number of steps taken to simplify and speed up the time it takes for approval. 50 per cent of the loans through our Simple Home Loans process are now receiving unconditional approvals within a day, giving customers the confidence to act quickly in the market.”
Attitudes to owning property
The survey by NAB Economics also shows younger Australians were the most aspirational, with almost four in 10 (39%) in the 18-29 group saving to buy, while 26 per cent are renting but saving to buy.
Almost one in five (18%) Australians are saving to buy a home, while 14 per cent of Australians are currently renting but saving to buy property.
State by State
Australians living in SA, WA, and the ACT (44%) were the most optimistic states for buying a home now while Tasmania (36%) was the least positive.
Intent to buy a home in the next 12 months is highest in the ACT (22%) and lowest in WA and Tasmania (11%).
Noticeably more Australians living in QLD (22%) also said they were renting but saving to buy than in any other state.
For further information:
Calum Young NAB Media Line
M: +61 (0) 472 863 630 P: +61 (0) 3 7035 5015