Streets Ahead : Streets Ahead Edition 12
3 1National homebuyer confidence remains strong; dips for the first time since March 2014 The Genworth HCI fell slightly to 98.2 from 99.6 in September 2015. The fall was driven by: S an 11% increase in the proportion of Homeowners who have experienced mortgage stress S a 13% increase in the proportion of Homeowners who expect mortgage stress T a 13% decrease in the proportion of respondents who believe now is a good time to buy a home from September 2015 to March 2016. 2. First Homebuyer confidence falls Following a record high of 102.1 in March 2015, FHB confidence fell to 98.4 in September 2015, and then again to 93.0 in March 2016. This was driven by: T a fall in the proportion of FHBs who believe now isagoodtimetobuyahometo50%(from67%in September 2015) S an increase in FHBs who expect mortgage stress in the next 12 months rising to 24% (from 14% in September 2015). 3 The belief that now is a good time to buy a home is falling in Australia The proportion of respondents who believe it is a good time to invest in property fell from 47% to 44% between March and September 2015, and again to 36% in March 2016. Meanwhile the proportion who believe it is a good time to buy a home fell from 52% to 48% between March and September 2015, and again to 42% in March 2016. 4 Accessibility is still the main barrier to purchasing a first home High property prices are still the number one barrier to purchasing a home (33%), followed by the difficulty of saving for a deposit, which rose to 24% (from 20% in September 2015). This indicates that accessibility (the ability to enter the property market), as opposed to affordability (the ability to meet mortgage repayments), remains the key barrier to entry into the property market. 5South Australians are the most confident The Genworth HCI in South Australia increased from 98.1 in September 2015 to 101.4 in March 2016, whilst confidence fell in all other states during the same period. South Australian respondents are least likely to use over 50% of their income to service debt, and are also the least likely to have experienced mortgage stress in the last 12 months. Summary In this edition the key findings are: Welcome to the 12th edition of the Genworth Homebuyer Confidence Index (HCI), a measure of Australian Homeowners’ and Non-Property Owners’ sentiment towards the housing and mortgage market.
Streets Ahead Edition 11