According to the ME Bank Quarterly Property Sentiment Report first home buyers expected house prices would continue to rise in the year ahead.
But overall the survey also showed the nation was divided on where they expected prices to go in the next year: 32 per cent believed property prices would shoot skywards, 28 per cent expected them to fall and 29 per cent thought they would stay the same.
Taking a closer look, Aussies living in New South Wales, Victoria and Western Australia believed prices would go down. With Queensland notably absent from that list, it seems our healthy Brisbane market continues to be cause for optimism.
Housing affordability remained a concern for almost 90 per cent of people surveyed, while about two in three buyers were concerned about banks’ tighter lending policies.
But a proposal by the banking regulator to ease credit policies should also ease borrowers’ concerns, said ME general manager for home lending Andrew Bartolo.
Mr Bartolo said the important thing for home buyers was to think ahead and make sure you buy within your budget comfort zone.
“If you’re planning to buy it’s important to think long-term and always buy affordable,” he said, “Consider whether you can comfortably repay your mortgage over the long term regardless of changes to interest rates, your lifestyle, and without having to rely on less dependable sources of income like rent and bonuses.”
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