Bank data shows more Australians reluctant to enter home market

SYDNEY, July 19 (Xinhua) -- Australians are becoming increasingly cautious about buying their own homes, according to new data released from one of the nation's largest banks.

The National Australia Bank (NAB) findings released on Monday showed only 18 percent of consumers surveyed between April and June believed it was a "good time" to enter the home market.

The quarterly figures, which coincided with a series of interest rate rises beginning in May, were the lowest since the bank first began collecting such statistics in 2020.

Along with buyers' reluctance, the survey showed fewer Australians were keen to invest in renovating their homes with the figures at 24 percent compared to 32 percent in the previous quarter.

The mood was likewise tentative when it came to getting a mortgage with the figures falling to 19 percent from the previous quarter's 27 percent.

Australia's central bank has lifted the interest rate three times since May to 1.35 percent, which leads to higher mortgage prices and puts pressure, with rising inflation, on people's household spending.

The survey showed that the figures fluctuated throughout the nation, possibly reflecting the mixed fortunes of the states during the pandemic-hit years.

Western Australia (WA), for instance, was less impacted by COVID-19 during the first two years than the eastern states of Queensland, New South Wales (NSW) and Victoria.

WA's latest quarterly home buying confidence statistics were 24 percent, down from the previous quarter's 32 percent, while Queensland's figures fell from 20 percent to just 14 percent.

Despite such downward trends, NAB home ownership executive Andy Kerr believed the situation would quickly improve, saying current conditions are opening new opportunities for buyers.

"New flexible working arrangements have allowed buyers to buy in suburbs that in the past would not have worked for full-time commutes to the city," he said.

Kerr also said NAB economists predicted a drop in housing prices of about 18 percent within the next 18 months "which would take us back to January 2021 levels."

"With a combination of house prices declining and the recent release of a first-home buyers grant, it will renew optimism for first-home buyers... so despite rising rates, we're still seeing a steady intention of people looking to buy, even if sentiment is showing us that buyers may wait a little longer."