We continue updating our findings from our household surveys. Today we look at households who desire to enter the market. We highlighted yesterday that there are more people excluded from the market, but what of those who would like to buy? We start with a summary of households by type. This is the national picture, by segment:
Here is the data which highlights the large number of want to buys, and the relative small number of first time buyers (defined as those actively seeking). We will discuss the other segments later.
Looking at the want to buys, we see the most significant barrier is the level of house prices, in trend terms this is becoming an even more significant issue. Whilst fears of unemployment have fallen a little, concerns about future interest rate rises are up a little and costs of living continue to be a barrier for some.
Turning to first time buyers, we see high house prices stand out as a constraining factor, whilst finding a place to buy has eased, a little.
We found that there has been a swing towards units, and further from the city. We also see a rise in those who are unsure of what or where to purchase. This is a national picture, and there is considerable state variation which I won’t cover here.
We see some first time buyers continue to consider an investment property alternative, as a way to at least get on the property ladder, even if its in an area in which they do not wish to reside. They are most likely to consider an investment property around edge of the city. Even here they may well be competing with overseas investors!
Finally, today, we look at which segments are most likely to use a mortgage broker. First time buyers are a little more likely, and well over 50 per cent would consider a broker.
Next time we will look at some of the other segments.
