NAB says only 1 in 4 Aussies think 2022 is a good year to buy a home

Aerial view of Australian houses.

Only a quarter of Australians think 2022 is a good year to buy a home, according to new research from NAB. 

Meanwhile, rising inflation has impacted renovators hoping to upscale, with half of renovators claiming surging costs have hindered their ability to complete repairs. Now, only 18% intend to upgrade their existing home.

This report aligns with a larger narrative of financial hesitancy in 2022. Aussies may be more cashed up than ever, but the turning economic climate has hit the brakes on any house-spending urgency.

RELATED: Australians struggling to pay bills and save an emergency fund, says NAB

Buyer mood cools as the property market shifts

According to NAB, around 28% of Australians reckon now is a good time to take out a home loan, while only 13% intend to buy property at all this year. In the same vein, only a third of Australians believe now is a good time to renovate.

A competitive property market, soaring prices, and a rising cost of living may be contributing to the hesitation. 

The NAB executive chief of home ownership, Andy Kerr, says that budgeting has become a primary concern for Australians. “Customers are telling us the amount they’re prepared to borrow to buy a home is the most important factor,” he explains.

Unable to borrow as much as they want or save or a hefty deposit, many Australians may find their dream home out of reach for now.

There could be relief on the horizon. Experts believe slowing auction sales rates and burgeoning supply are poised to drive down prices by 2023, which comes as welcome news for many first-home hopefuls. 

However, experts also predict the RBA will raise the cash rate by August, which will drive up variable rates on home loans and disincentivize new buyers.

RELATED: 5 things you should know about the Australian property market in 2022

“Regardless of if you’re looking to buy or renovate,” says Kerr,  “it’s important to ensure you can appropriately manage your repayments, both today and in the future.”

Home loan and property research may be the game changer for first home buyers

There are strategies available to first home buyers looking to break in. These include:

In any case, home loan research is key to reading the mood of Australia’s market. 

Browse a selection of home loans below.

Compare and save on home loans - last updated 17 April 2024

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    Initial monthly repayment
    6.01% p.a. variable
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    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
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    5.99% p.a.
    fixed 3 years
    6.37% p.a.

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    6.09% p.a. variable
    6.09% p.a.

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    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
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    Initial monthly repayment
    6.14% p.a. variable
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    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

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  • Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
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    Initial monthly repayment
    6.54% p.a.
    fixed 2 years
    7.10% p.a.

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

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  • Flex Home Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.24% p.a. variable
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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