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First home buyer confidence surges

01 April 2015 Staff Reporter

Confidence among first home buyers soared to a record high in March, according to new research.

Genworth's Streets Ahead report shows first home buyer confidence rose to a reading of 102.1 last month – up from 98.4 in September 2014.

The report also shows that overall homebuyer confidence increased to 99.2 from 98.1 in September.

Western Australia recorded the highest confidence index of 101.6, the largest increase of all the states, while South Australia sat just behind at 100.3.

New South Wales and Queensland recorded a confidence index of 100.0 and 97.9 respectively.

Victoria was the only state to see a fall in homebuyer confidence, recording the lowest index of 97.6.

Genworth chief commercial officer Bridget Sakr said of those surveyed, 52 per cent believe now is a good time to buy a property in Australia, an increase from 41 per cent in September 2014.

Despite this, the report showed accessibility remains an issue for first home buyers.

“Our research suggests the first home buyer segment appears to be more concerned about gaining access to the property market than their ability to service a mortgage,” Ms Sakr said.

“Over a third of prospective first home buyers indicated that high property prices are the greatest barrier to home ownership, while one in five suggested it was saving for a deposit.”

The results also indicated a “cautious approach to debt among respondents”, with just three per cent of homeowners having taken on more debt as a result of lower interest rates.

The proportion of homeowners making overpayments on their mortgage increased from 45 per cent in September to 51 per cent in March, according to the report.

First home buyer confidence surges
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