The prospect of positive house price movements, coupled with historically low interest rates, could push many Australians into the real estate market, the latest data from financial comparison site Canstar has revealed.
The company's latest Consumer Pulse report found that 64% of Australians who closely monitor the property market predict that prices will stay at current levels or increase further by 2023.
This sentiment is shared by 70% of baby boomers, or those aged 55 to 74, who may wish to downsize their homes. The majority of Millennials (62%), Gen X (60%) and Gen Z (56%) also predict similar trends in real estate prices, the age groups most likely to seek to acquire properties.
"Homebuyers are flocking to the market on the first signs of positive house price movements," said Steve Mickenbecker, group director of financial services at Canstar.
“For first-time homebuyers, the fear of missing out (FOMO) is back in the psyche with around three in five millennials expecting prices to go up or at least remain stable. "
"Real estate price declines are generally late to the onset of the recession and could still be ahead, but lenders don't expect a correction as deep or prolonged as it is. 39; at the onset of COVID-19, and confidence is on the rise all around. "
Mickenbecker said the improved outlook and buyer confidence was due to the country's effective response to the coronavirus pandemic, a wave of government subsidies, and historically low interest rates from the Reserve Bank of Australia (RBA).
"Paying off a loan with a rate of around 2% starts making the rent expensive for first-time buyers, especially when they also receive state and federal assistance for qualify for this first loan, ”he said.
"The RBA will not cut the cash rate this month, but it does not have to through its generous handling of quantitative easing, reducing lender funding costs and borrower repayments. at a low level. "
Last month, the central bank cut the cash rate to an all-time low of 0.10%, followed by banks and lenders with cuts in interest rates on home loans, mortgage and mortgage interest. Savings and deposits.
According to Canstar data, 25 lenders have reduced variable mortgage rates on average by -0.17% since the RBA's last spot rate cut on November 3. A total of 63 lenders also reduced 1,138 fixed rates by -0.31% on average. The average variable rate is now at 3.34%, while the lowest variable rate is at 1.77% (60% LVR) or 1.99% (80% LVR).
The firm also found that 29 banks had reduced their savings rates since last month. Bonus savings accounts were reduced by an average of -0.16%, while regular savings rates fell by -0.19%. The highest savings rate is currently 1.75%, available for four months before dropping back to 0.30%, or 3% for anyone aged 18-29 with less than $ 30,000 in bank.
Meanwhile, 51 vendors have reduced 560 term deposit rates since November 3 by an average of -0.13%. During the period, six vendors increased 21 term deposit rates by 0.17% on average.
Top suburbs:
south of Brisbane
,
Belmont
,
Penrith
,
coorparoo
,
Chermside
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