Home prices hurting Aussies’ mental health
Home price trends for each state has been released with a new report showing the heartbreaking truth on how the trends are hurting most Australians.
Would-be property buyers are reporting high levels of stress and uncertainty, as home values continue to rise, according to the latest Realestate.com.au Property Seeker Survey.
Across Australia, buyers’ main concerns are cost of living, property prices, and rising interest rates, all of which are influencing the timing of their property plans.
While markets have faced periods of uncertainty in 2024, values continue to grow, with the latest PropTrack home price index hitting new record highs in October. This has contributed to the majority of buyers feeling now is a much better time to be a seller than a buyer of property.
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Survey respondents also held a dim view of interest rates, with more than half expecting further RBA hikes, rather than the cuts that economists are widely predicting in 2025.
PropTrack senior analyst Karen Dellow said that despite the buyer negativity, spring 2024 has been a particularly strong selling season, with “record new listing volumes and strong sales throughout September and October, demonstrating that despite higher interest rates and home prices, buyers are still willing to engage in the market”.
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NSW
“Sales rose by 4 per cent in September compared to the previous year, and the first few weeks of October exhibited positive year-on-year growth, indicating a higher number of buyers in the market this year,” Ms Dellow said.
“Although transactions are still happening, many respondents stated they were in a worse financial position compared to 12 months ago.
“More than a third of buyers in NSW reported being financially worse off, compared to 29 per cent who said they were better off.”
Ms Dellow said rent and mortgage payments were both significant financial burdens in NSW, where both cost more than other states.
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“On average, 27 per cent of income is spent on rent or mortgage payments; however, 41 per cent of respondents spend a third or more each month,” she said.
“Largely due to increased interest rates, 49 per cent reported paying more on their mortgage or rent than a year ago.”
Nearly two-thirds of NSW buyers expect further growth in the year ahead, with 30 per cent nominating creating wealth through buying property as their main motivation for buying.
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VIC
In Victoria, sales rose by 18 per cent in September compared to the previous year, and October’s year-on-year growth also indicated a higher number of buyers in the market.
“However, 40 per cent of buyers reported being financially worse off, compared to 24 per cent who said they were better off,” Ms Dellow said.
“On average, 25 per cent of income is spent on rent or mortgage payments; however, 40 per cent of respondents spend a third or more each month.
“An increase in property prices is also expected in the coming year, with 60 per cent expecting to see further growth.
“Buyers remain apprehensive about the current property market and are experiencing more financial pressure compared to a year ago.”
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QLD
Queensland sales rose by 3 per cent in September and have also had year on year growth in October.
Nearly 40 per cent of buyers in Queensland reported being financially worse off, compared to 26 per cent who said they were better off.
An average 25 per cent of income is spent on rent or mortgage payments in the state; however, 41 per cent of respondents spend a third or more each month and 55 per cent reported paying more on their mortgage or rent than a year ago.
And 70 per cent expect an increase in property prices over the next year.
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SA
A strong 78 per cent of South Australian buyers believe now is the time to sell, not buy a property.
South Australia was the one state where buyer negativity actually translated to spring selling, with the number of sales in September the same as 12 months ago.
“More than 40 per cent of buyers in South Australia reported being financially worse off, the highest of all states, compared to 24 per cent who said they were better off,” Ms Dellow said.
Respondents spent an average of 25 per cent of income on rent or mortgage payments, with 36 per cent spending a third or more each month.
And 57 per cent were paying more on their mortgage or rent than a year ago and 72 per cent expected further price growth for the next year.
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