Homebuyer confidence and investor demand has surged to its highest level in two years, a recent survey has found.
The Home Finance Index conducted by the Commonwealth Bank and the Mortgage & Finance Association of Australia shows that 49.8 per cent of the 1,361 people surveyed believe residential prices will rise over the next quarter – double the number in March 2012.
Meanwhile 30.8 per cent of respondents report that their financial situation has improved over the last year – a rise of 14 per cent over March 2012.
The number of active buyers likely to be in the market for a home loan over the next year has jumped by almost 50 per cent, from 12.7 per cent of respondents to 18.9 per cent.
The up-tick in homebuyers’ optimism is being driven by flat property prices and continuing falls in interest rates, creating a "buyer's market".
Commonwealth Bank of Australia’s executive general manager, third party and mobile banking, Kathy Cummings said the survey confirms that good times are ahead for the property market.
“Interest rates continue to be at historic low levels, creating a situation where mortgage repayments are more affordable than rents in many areas,” she said.
“The survey also shows that the broker proposition remains very strong in the market. There is an increase in the number of consumers who are prepared to choose a mortgage broker to find a home loan that's appropriate for them.”