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ISCOVER
Staff Reporter
Home buyer confidence has rebounded to a post-GFC high, according to Genworth’s latest Homebuyer Confidence Index.
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Released yesterday, the Index found sentiment currently sits at 98.4 – 2.2 per cent higher than the last Index in March and higher than any level seen since 2007.
In addition, the Index found almost 50 per cent of Australians believe now is a good time to buy – 10 per cent higher than March Index.
Speaking about the results, Genworth chief executive officer Ellie Comerford said lower interest rates had ultimately led to the improvement in confidence.
“The Genworth Homebuyer Confidence Index is showing that homebuyers are far more positive than much of the current public debate centered on the economy. Australia has some compelling economic indicators and a low cash rate that is making many potential home buyers believe that now is a good time to be considering home ownership. However concerns remain around the global economy and the future impact this might exert on Australia,” she said.
The Genworth September HCI also shows that mortgage stress fell for the second consecutive survey.
The proportion of surveyed mortgage holders who experienced difficulty meeting repayments in the last year fell from 22 per cent in March 2012 to 18 per cent now; while the proportion of borrowers expecting difficulty meeting repayments in the coming year fell from 22 per cent to 19 per cent over the same period.
“Cost of living pressures remain but today’s interest rates are lowering the cost of mortgages, allowing people to save more and in turn improving sentiment and a perception of being more financially secure in the year ahead,” Ms Comerford said.
