More Australians homebuyers are losing confidence in the property market.
According to new research from mortgage broker Aussie, uncertainty arising from the ongoing COVID-19 pandemic has led to two thirds (65%) of Australians with property plans to lose confidence in their ability to achieve their property goals.
Figures from Aussie also revealed that consumer confidence in the property market has collapsed from 76% in January of this year, to just 46% in June. Additionally, more than six in 10 (61%) of respondents indicated that the pandemic has resulted in changes to their property plans, including a third (35%) who say they have delayed them.
However, 42% of Australians say that they want to take advantage of the market despite the uncertainties – they just don’t know how. This has led to over half (54%) wanting more guidance when it comes to their property and finances, while a third (36%) said they would be more likely to engage a broker now to help them better navigate the property market.
Aussie said that customer data supports the statistics, with enquires remaining relatively steady. The broker saw a 1.8% year-on-year increase in enquiries between January to July 2020, while lodgements were up 16% the same period year-on-year. According to Aussie, the numbers showed that many Australians are still “looking for ways to navigate the current environment to see how they can make their property plans a reality.”
“There are many opportunities available right now that could make it favourable for Australians to enter the market, invest, downsize or refinance, including lender cashback incentives, reduced interest rates and government initiatives, such as the First Home Owner Grant, the $25,000 HomeBuilder grant, and the First Home Loan Deposit Scheme (FHLDS),” said James Symond, chief executive officer of Aussie.
“During what has been a challenging time for many Australians, including a change in personal circumstances or financial outlook for some, brokers have an important role to play in helping Australians understand their options and make smart choices to keep their property goals on track.”
