FOMO drives property market: Australians divided about whether now is the right time to buy a home

Two out of five Australians believe now is the right time to get into the property market but as home values skyrocket, one in three are hesitant.

April 30, 2021

Two out of five Australians believe now is the right time to get into the property market but as home values skyrocket, one in three are hesitant.

  • Two in five (42%) Australians say now is a good time to buy property
  • Millennials are most confident about buying in the current market: One in two (45%) say now is a good time to buy

Research commissioned by Mortgage Choice confirms that Australians hold mixed views about buying a home in the current property market.

A survey of 1000 Australians revealed that Millennials are most confident, with close to half (45%) agreeing that now is a good time to buy, compared to 42% across all age groups. However, one in three (30%) Australians simply don’t know if now is the right time to buy, and one in four (28%) believe the current market is not ideal for buying.

Ms Susan Mitchell, CEO of Mortgage Choice, said, “Australians are deeply divided about whether today’s property market offers good buying opportunities."

“On one hand, home loan interest rates are at historic lows, and this has pushed the financing cost of a home down to record lows. At the same time, property values are surging, and this is likely to be driving significant ‘FOMO’ activity among buyers who are concerned about being priced out of the market altogether if they don’t act fast.”

Data from CoreLogic confirms that home values nationally rose 2.8% in March 2021 – the fastest monthly gain since October 19981. The number of homes listed for sale remains extremely tight, contributing to rapid price appreciation2.

“The current market makes it especially critical for home buyers to speak with a home loan expert,” said Ms Mitchell.

“The expert advice and tailored analysis of a professional mortgage broker can give buyers the confidence of knowing they are in a position to buy today, or if they could benefit from taking additional steps to secure home loan approval.” Pre-approval can bring certainty Rising auction clearance rates, which CoreLogic says were consistently above 80% during March, may be adding to buyer uncertainty3.

“Having home loan pre-approval is an important step for home buyers, especially when buying at auction,” said Ms Mitchell.

“Pre-approval provides a clear bidding limit, and this can be a valuable confidence booster."

“Not all lenders offer pre-approval, and the conditions vary among those that do. A Mortgage Choice broker can cut through the complexity to help buyers understand the loan choice that is right for their needs, and start the ball rolling with loan pre-approval,” concluded Ms Mitchell.

About the research
Edentify was commissioned by Mortgage Choice to conduct a survey of 1000 Australians in March 2021.

1 https://www.corelogic.com.au/sites/default/files/2021-03/210401_CoreLogic_HVI.pdf 
2 https://www.corelogic.com.au/sites/default/files/2021-03/210401_CoreLogic_HVI.pdf
3 https://www.corelogic.com.au/sites/default/files/2021-03/210401_CoreLogic_HVI.pdf


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