Two thirds of Australian lack property confidence during COVID-19: Aussie
New research from Aussie home loans has revealed that uncertainty arising as a result of the ongoing COVID-19 pandemic is leading two thirds (65%) of Australians with property plans to lose confidence in their ability to achieve their property goals.
Consumer confidence in the property market has also collapsed from 76 percent in January of this year, to just 46 percent in June.
More than 6 in 10 – or 61 percent – of respondents further indicated that the pandemic has resulted in changes to their property plans, including a third (35%) who say they have delayed them.
The research, commissioned by leading mortgage broker Aussie, asked the same questions of Australians pre-pandemic in January, and again in June, highlighting the doubt COVID-19 has cast over Australians’ plans to buy or refinance their homes.
Despite the uncertainties, 42 percent of Australians said they want to take advantage of the market, but do not know how. This has led to over half (54%) wanting more guidance when it comes to their property and finances, while a third (36%) said they would be more likely to engage a broker now to help them better navigate the property market.
Aussie customer data supports the statistics, with enquires remaining relatively steady. Aussie saw a 1.8 percent increase between January to July 2020, relative to the same time period last year, while lodgements are up 16 percent year-on-year, showing that that many Australians are looking for ways to navigate the current environment to see how they can make their property plans a reality.
Aussie Chief Executive Officer, James Symond, said the strong number of enquiries shows that there is still interest in the market.
“There are many opportunities available right now that could make it favourable for Australians to enter the market, invest, downsize or refinance, including lender cashback incentives, reduced interest rates and government initiatives, such as the First Home Owner Grant, the $25,000 HomeBuilder grant, and the First Home Loan Deposit Scheme (FHLDS),” Symond said.
“During what has been a challenging time for many Australians, including a change in personal circumstances or financial outlook for some, brokers have an important role to play in helping Australians understand their options and make smart choices to keep their property goals on track,” he concluded.