Confidence in the housing market bounced back in the last quarter, as the Reserve Bank of Australia eased back on its bumper rate rises.
According to the NAB Property Insight Report, there has been a rise in the number of Australians who said now is a good time to buy, reaching 23 per cent following a drop to a survey low of 18 per cent in the second quarter.
However, it should be noted that this figure is marginally below where it was in 2021, and comes off the back of six straight quarterly drops.
The report has found that home buying confidence has risen in most states, with the highest being in Victoria at 27 per cent, followed by NSW and Western Australia, both at 25 per cent.
ACT recorded the strongest level of buyer confidence in the second quarter at 27 per cent, while falling back to 20 per cent in Q3. South Australia and Queensland both sat at 19 per cent confidence to buy, and Tasmania recorded the weakest figure at 18 per cent.
In regard to buying investment property, the number of Australians who believed it was a good time to buy sat at 21 per cent, with the sharpest increase being observed in NSW (24 per cent) followed by Western Australia (21 per cent), and Victoria (20 per cent). Queensland and South Australia both tied at 18 per cent.
On the other hand, buying confidence for investment properties fell in ACT and Tasmania to just 10 per cent.
NAB group executive, personal banking, Rachel Slade, said the housing market is proving resilient in 2022, much like the broader economy.
“The first rate rises in more than a decade have caused concern, but signs the pace of rate rises are easing has generated a rebound in confidence through the crucial spring selling season,” Ms Slade stated.
“Surging rental prices are also a factor, both encouraging investors back into the market as well as first home buyers looking to escape rising rents.
“While we expect prices have further to fall, there are reasons for more optimism than a couple of months ago.”
This data follows Bankwest’s Home Truths survey findings earlier this year, which indicated that young Western Australians were still confident in owning a home despite economic headwinds.
According to the bank’s findings, 73 per cent of Gen Z (14–25 years old) and 57 per cent of Gen Y (26–41 years old) in Western Australia still considered owning a home as an important goal regardless of the economic climate.