In particular, we have seen an interesting trend developing in one of the most significant segments of the buyer pool; the first home buyers. The report highlighted the younger demographic of first home buyers are increasingly looking towards bargain buys in country towns.
Reporting that a staggering 82% of first home buyers said that they would like to see property prices reduce if the economy worsened. Other demographics were not in total agreeance, with 66% of investors and 57% of owner occupiers hoping for price reductions in properties for sale.
This revelation may not be such a stretch to believe, with first home buyers needing greater deposits to enter the property market, the reductions in property prices will in turn reduce the deposits required, or alternatively allow for this group to consider buying in more desirable areas.
The report also detailed the following results for the first home buyer segment:
82% of buyers were hoping to find bargain properties
51% planned to enter the property market within the next 12 months; this figure is up 9 points from the previous quarter report
60% of the first home buyers were more likely to consider buying properties in regional areas
It is this shift in location that is possibly the most interesting trend to come through the report. It would appear that through recent months, the effects of the global pandemic have altered how first home buyers see their futures in the real estate world.
Sentiment around working arrangements has been a large factor in this group realising that proximity and practicality of home locations is no longer the single most important factor when they choose where they would like to live. Rather, they are seeing the ‘lifestyle’ factor play much more into the process.
The above 60% of first home buyers who are not more likely to consider regional areas said that this was in part due to saving money and improving their lifestyle. This 60% of first home buyers was significantly higher than that of the 45% of total respondents considering regional locations.
Additionally, the Home Builder grants are swaying the first home builder/buyers to making their move into property potentially sooner than what they originally planned. The current grants available are dramatically improving the affordability of first home buyers to enter the market. The report showed that 52% of first home buyers were interested in applying for the current grants, where only 33% of existing homeowners were.
The current market conditions coupled with buying and building grants and the historically low interest rates has made an interesting bubble for first-time home buyers to make a move into owing their own home. It would be an exciting movement to see many more young Australians making their way into the property sector.
If you are looking to find your perfect first home discover our latest listings here.
Read the ME Quarterly Property Sentiment Report here.