First-home buyers are increasingly becoming optimistic about the housing market as conditions turn more favourable, according to the latest study by ME Bank.
A huge share of first-home buyers feel confident about the housing market, with 53% saying they are likely to buy in the next 12 months.
However, around the same share of first-home buyers said there is not enough options in the market currently while others are still concerned about saving for a deposit.
Andrew Bartolo, head of home loans at ME Bank, said despite the growing positivity and optimism for house prices, there are still many buyers and sellers who will be more comfortable continuing a ‘watch and see’ approach.
"The cash rate cut at the start of the month may encourage some to make moves in the market – particularly first-home buyers looking to take advantage of the record-low interest rates, price falls and reduced investor activity," he said.
Still, homeowners, in general, are less worried about the value of their property falling. Borrowers are also less concerned about struggling to pay back their home loans once their mortgage deferrals end.
Overall, Australians' optimism towards the property market improved, with 65% of owners expecting prices to increase or stay where they live over the next 12 months.
"This is really promising and indicates that despite volatility in the market, Australians have a resilient mindset when it comes to property," he said.