Young buyers
Young buyers are keener than ever to buy. Image- Canva.
  • Buyers are keener than ever to buy properties in the next 12 months
  • Investors are also being drawn into the market
  • New homebuyer schemes are speeding up the process

Despite – and probably because of – strong house price growth, more Australians intend to buy a new home in 2021, compared to the last quarter of 2020, according to new research from the NAB.

High price growth is not putting buyers off, and in fact may be luring them in lest they miss out – the dreaded ‘FOMO’.

The number of Australians saying they will buy in the next year has increased to 15%, up from 13%, comparing Q1 2021 to Q4 2020.

Investors are also keener, with their relevant intention rising from 8% to 9% over the same period.

Although these are not huge changes, they are actually at all-time highs.

“Young Australians are the most aspirational home buyers right now and we’re seeing this with 25% of applications now done via video, with thousands more booked online every month.”

Andy Kerr, NAB Executive, Home Ownership

“Over the past year, we have seen record demand from first homebuyers with NAB lending increasing by 67% compared to 2020.

“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.”

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.

Almost one in five (18%) Australians are saving to buy a home, while 14% of Australians are currently renting but saving to buy property.

Home Living Status, 2021

Home Living Status 2021
Source: NAB

Faster, faster

Meanwhile, new CommBank data has revealed that buyers are transacting 4.8 years faster using the new homebuyer schemes, such as the First Home Loan Deposit Scheme (FHLDS) or New Home Guarantee (NHG).

The bank is opening its waitlist today for these schemes where single parents can purchase or build a property with as little as 2% down, with the federal government guaranteeing an additional 18% to make up the deposit.

“Our data shows CBA customers who have used one of these homebuyer initiatives have been able to enter the property market nearly five years earlier on average than they would if they saved for the standard 20% deposit,” said Michael Baumann, Executive General Manager of Home Buying at CBA.

Comparing times across states, customers in VIC and NSW saved the most time using these new schemes, said Commbank.

Mr Baumann said the government grants and schemes hadn’t just helped home buyers enter the market faster, they had also helped customers purchase different types of properties in both metropolitan and regional areas.

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