According to ME Bank Quarterly Property Sentiment Survey, the ‘ fear of missing out ‘ is driving the property market for the first-home buyer. Approximately 51 percent of homebuyers say they will purchase in 2020. This compares with just 39 percent of property investors expected to buy this year.
“The recent property price recovery has likely nudged first-home buyers to get in while they can as though it’s ‘now or never’ – and has created a sense of FOMO,” ME’s general manager Andrew Bartolo said. “Low-interest rates and commentary in the market for the support of first-home buyers may have also contributed to an increase in home-buying intentions.”
The report reveals an increase in sentiment towards the property market for the third quarter in a row, rising to net positive 21 percentage points up 3 percentage points from Q4 2019, and 14 percentage points from Q2 2019 when the survey first began.
“Considering a combination of market factors including the buzz of home value growth, a solid spring selling season, plus rate cuts and signs from the RBA that rates will stay lower for longer, it’s no surprise overall property sentiment has improved,” said Bartolo.
Investors were less confident but Steve Jovcevski, a property expert at the Mozo financial comparison site, expects an improvement in investor interest in 2020. “APRA dropped the serviceability ratio just a few months ago, so it does take time to flow through the market and for investors’ confidence to return,” he says.