First homebuyers are looking further out for properties.
Young first homebuyers are casting a wider net in their search for properties and hope to capitalise on better price deals if the economy deteriorates further because of COVID-19.
Nearly two-thirds of first homebuyers polled in ME Bank’s quarterly property sentiment report said they were more likely to consider buying in a regional area during the pandemic to save money.
About 45 per cent of all respondents, including next homebuyers, investors and downsizers, said they would do the same.
First homebuyers were also the most optimistic about the market, eyeing the worsening economy and falling prices as an opportunity to get a foot on the property ladder for less.
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Roughly four in five first homebuyers said they hoped to see bargain properties if the economy continued to weaken. Only 57 per cent of existing homeowners felt the same way.
First homebuyers were also more likely to be planning a purchase, with just over half saying they wanted to buy property in the next year.
ME general manager Home Loans Andrew Bartolo said first homebuyers were the most optimistic about lower interest rates and the prospect of falling prices.
Port Macquarie is one of the most popular regional NSW areas for first homebuyers. Picture: Destination NSW
“First homebuyers may be looking to find a silver lining in the current economic climate,” he said.
Plans to purchase in regional areas may have been influenced by increased work from home arrangements, Mr Bartolo added.
“New remote and flexible working arrangements brought in to accommodate for COVID-19 have clearly influenced Australians’ sentiment towards buying in regional areas,” he said.
The Federal Government’s $25,000 HomeBuilder grant was another factor encouraging first homebuyers.
The grant is available for purchasers of new homes, provided they are priced under $750,000. Eligible buyers need to have an income under $125,000 if purchasing alone, or $200,000 if buying as a couple.
Roughly half of first homebuyers said they would consider applying for the grant, while only a third of existing homebuyers were exploring the option.
The findings echo those of previous bank studies that revealed younger Aussies were generally more positive about the property market.
Two thirds of Aussies aged under 30 polled in a recent Westpac survey claimed they’ve become more serious about buying a home since the COVID-19 crisis started.
Another Finder.com survey showed close to half of Gen Z respondents were in a better financial position compared to before the coronavirus pandemic started. Only about a quarter of Gen X respondents agreed.
First homebuyers are more optimistic about the property market than existing owners.
Westpac head of savings Kathryn Carpenter said younger Aussies were more inclined to save for a home deposit during COVID-19 because social restrictions were making a dramatic lifestyle change.
“With limitations around travel and experiences that are usually popular with this generation, like attending concerts or festivals, it’s encouraging to see that many have seized this as an opportunity to double down on their home ownership goals,” Ms Carpenter said.
ME’s report also revealed the rest of the buyer market outside of first homebuyers may be more inclined to sit on their hands during the coronavirus-led economic crisis.
Asked about their actual property plans over the next 12 months, 61 per cent of the Aussies polled said they would neither buy nor sell.
MOST POPULAR REGIONAL NSW SUBURBS (by sales volumes)
Port Macquarie $585,000 (median house price)
Orange $430,000
Dubbo $360,000
Coffs Harbour $490,000
Goulburn $433,000
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