ME Bank: Millennials more positive about property and ready to leap into the market
Been on the fence about property prices and not sure whether or not you want to take the plunge? Well, you may be behind the eight ball, as more Aussie millennials have reported feeling positive about the current housing market and are now willing to dive in.
This is according to ME’s latest Quarterly Property Sentiment Report, which found that sentiment towards the Australian property market is more positive, with 42% of people saying they feel optimistic about it compared to last quarter and over half (51%) of people aged between 25 and 39 reported they feel the same way.
Since the third RBA cash rate cut of 2019 in October, home loan interest rates have hit seriously competitive lows with some dropping well below 3.00%, meaning it could be a prime time for new home buyers to borrow for a property.
“Over the past six months we’ve noticed people taking a ‘wait and see’ approach to the market,” ME’s General Manager Home Loans, Andrew Bartolo said.
“While the increase in plans to transact in the market is modest, greater positive sentiment in the market suggests the recent interest rate changes, house prices, auction clearance rates etc. are making an impact.”
The ME report revealed that more Aussies are now prepared to enter the property market than they were in July, with increased numbers looking to buy (2% more) or sell (4% more) and less people willing to wait it out or do nothing.
Again, the millennial age bracket represents the biggest growth from last quarter in terms of those looking to enter the market, with an 8% increase in the number claiming that they are more likely to buy or sell a property now than earlier in the year.
But are there enough houses on the market at the moment?
A majority of first home buyers, investors and owner occupiers alike foresee property prices rising over the next 12 months, especially in New South Wales, Victoria and Queensland.
But when it comes to housing supply, there’s a split view between different potential home buyers on how much choice is out there for them.
While half of Aussies are satisfied with the amount of properties available on the current market, fewer first home buyers agree, as they say it’s hard to get a foot in the door due to high competition at the moment.
“Housing supply is lower than last spring and the competition can be felt among those currently buying, so it’s not surprising that only 1 in 2 Aussies think there’s enough choice available,” said Bartolo.
RELATED ARTICLE: This simple trick saved one family $4,500 a year
Hot tips for first home buyers entering the property market
- Choose a competitive home loan: Since the three RBA cuts in June, July and October of this year, home loan lenders are offering some competitively low rates, so it could be worth comparing loans outside of the big banks. There are plenty of home loan lenders around, so take your time and compare rates and features to ensure the loan you choose suits you.
- Shop around: Since you are buying your first home, it may be worthwhile viewing multiple houses instead of simply settling on the first house you see. Take the time to go to more than a handful of open houses and get a feel for what’s on the market, you never know what you might find.
- Keep an open mind: With more Aussies willing to jump in on the property market there’s more competition out there, so don’t get too attached to a house you may have had your heart set on. Stay open to other options, the property you may have missed out on isn’t the be all and end all.
RELATED GUIDE: Top things to consider when choosing a home loan
Need a bit more help before leaping into the property market and securing a home loan? Check out our home loan comparison table to weigh up lenders or have a read of our guides and tips for all the info you need.