Gen Y generally upbeat
QUEENSLANDERS are more positive about housing affordability than people anywhere else in Australia, with Generation Y the most upbeat of all when it comes to property prices, according to new research.
The annual realestate.com.au Housing Affordability Sentiment Index (HASI), which tracks the sentiments of Australians towards the cost of housing, reveals that, in general, all states and generations have a brighter outlook on property prices than they did 12 months ago.
This is despite statistics based on the RP Data-Rismark Daily Home Value Index showing capital city home values have all improved over the last year.
The HASI results are driven by an easing of household expenses and debt combined with increasing household savings.
The index also reveals that first-home buyers are returning to the market, making up 46 per cent of those looking to buy, compared with 28 per cent at the same time last year.
The HASI is based on a national survey of 2400 online panel members conducted by independent research company Research Ink on behalf of realestate.com.au.
In Queensland, 37 per cent of respondents believe their finances will improve (an increase of six per cent from 2012) and 28 per cent believe housing affordability will improve (up seven per cent).
Generation Y (born 1981–1993) is the most positive about housing affordability in the country: 14 per cent of the those surveyed report they own an investment property and home – an increase of six per cent on 2012 – and 24 per cent of those in the property market say the current economic conditions increase their likelihood of buying or building.
Justine Davies, finance editor at research and ratings organisation CANSTAR, says the jump in first-home buyers looking to enter the market is encouraging.
‘‘To me that indicates there is a real feeling now that home ownership is becoming more affordable, in part due to low interest rates that are boosting consumer sentiment,’’ she says.
Positive outlook: Queenslanders are confident about buying.