Home loan customers are being 'realistic about what they can afford'

Friday 02 October 2009

Article by Mozo

Australian home loans customers are being more realistic about what they can afford, it has been suggested.

Peter Wright, residential general manager for realestate.com, sought to explain recent figures that suggest people are increasingly selling, or planning to sell, their properties.

The website’s recent Consumer Insights Report found that 28 per cent of the 2,270 home sellers surveyed attributed their decision to the economic downturn.

It was also found that people hoped to escape their high fixed rate mortgages, potentially meaning they were looking for alternative low interest home loans.

Furthermore, 14 per cent of homeowners said they would consider selling if interest rates increased.

Commenting on the development, Mr Wright said: "This report suggests property owners are re-evaluating financial priorities by taking a more realistic approach to what they can afford."

Meanwhile, June saw the strongest quarterly growth in house prices since the recession began in 2007.

The latest Home Price Guide from the Australian Property Monitors revealed that values increased by 3.3 per cent across the country.

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