New research finds home isn’t where the heart is

December 10, 2021

A survey¹ has revealed that an overwhelming number of Aussies feel like it’s harder to get
on the property ladder compared to 12 months ago and the majority (70%) of prospective
buyers do not feel optimistic about buying a property they like and can afford.

Mortgage Choice and Smartline CEO, Susan Mitchell said, “Our latest research provides
insight into how Australians are feeling about the property market. The staggering growth the
Australian property market has experienced this year is leaving prospective buyers with so
few options that leaves many asking – is home really where the heart is?”

“Survey respondents who said it is harder to enter the property market revealed that the
biggest challenge to purchasing property is affordability of the housing market (83%).This is
unsurprising when you look at recent property market data published by REA Group’s
PropTrack, which found that over 2021, housing prices have grown at the third-fastest rate in
Australia’s history. Capital city dwelling values surged by more than 20% over 2021, while in
the regions, median home prices increased by 25%².”

“The second biggest challenge facing prospective buyers is finding a suitable property within
their budget in a suitable location (64%). There is strong demand across the nation and
buyers are having to move quickly to snap up a property, but this FOMO might be pushing
buyers to settle for the property they can get, rather than the home they desire,” said Ms
Mitchell.

“The third biggest challenge facing prospective buyers is the well-known hurdle of saving for
a for a deposit (56%). Sadly, for many hopeful buyers in our nation’s capital cities, there are
few avenues to making this challenge more achievable, without the help of the bank of mum
and dad,” said Ms Mitchell.

REA Group’s Director of Economic Research, Cameron Kusher said, “While current owners
enjoy the wealth-effect of higher property prices, for those looking to enter the market the
dream of home ownership slips further away.”

“We know that government support measures such as first home buyer grants have a
positive impact on first home buyer’s ability to enter the market, but they are also inflationary
which makes it harder for the next cohort of first-time buyers to enter the market. Ideally, we
need to look for strategy’s that assist first home buyers to enter into home ownership which
also don’t exacerbate price increases,” said Mr Kusher.

Ms Mitchell added, “The phenomenal growth we’re seeing in dwelling values driven in part
by record-low borrowing costs, is leaving many Australians feeling locked out of the market
but with professional help, taking the steps towards property ownership can feel more
achievable.”

“Mortgage brokers will not only take the legwork out of the home loan process, but they can
also help buyers navigate a competitive market with often lengthy lender loan turnaround
times. It’s easy to get swept up in the FOMO and rush to make decisions, which is why
having an expert by your side is important,” concluded Ms Mitchell.

^{1 Mortgage Choice commissioned a survey by CoreData Research of 1010 Australian consumers between October 27 to November 10, 2021.
2 Source: https://www.realestate.com.au/insights/if-housing-price-growth-seems-unusually-high-thats-because-it-is/}