Despite booming prices in the property market, first home buyer confidence has risen to a record high.
Genworth’s Streets Ahead report saw first homebuyer confidence rise to 102.1 in March, with 66% believing that now was a good time to enter the property market.
Genworth chief commercial officer Bridget Sakr said respondent’s attitudes remained positive in the current market climate.
“More than half of those surveyed believed that now is a good time to buy property in Australia, up from 41% six months ago,” she said.
“Our research suggests that the first homebuyer segment appears to be more concerned about gaining access to the property market than their ability to service a mortgage.”
Amidst record low interest rates, accessibility is still a major concern for first home buyers.
“Over a third of prospective first homebuyers indicated that high property prices are the greatest barrier to home ownership, while one in five suggested it was saving for a deposit.”
In proportion to property value, the average deposit has remained relatively stable since 2009. However, skyrocketing prices have meant time taken to save for a deposit has increased.
Home buyers are continually turning to non-savings sources such as personal debt or monetary gifts from family.
“Saving a deposit clearly remains a key obstacle for first homebuyers looking to enter the market and points to the importance of low deposit options such as Lenders Mortgage Insurance,” Sakr said.
The report also reveals people are taking a more cautious approach to debt with 3% of home owners taking on more debt due to lower interest rates.
The proportion of home owners making overpayments on their mortgage increased from 45% in September 2014 to 51% in March.
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