An increasing number of potential home buyers are reporting tight credit conditions as one of their primary impediments to purchasing property.
National Australia Bank’s latest Residential Property Survey found while concerns over interest rates are still significant, they have fallen somewhat as the previous tightening bias reduces.
“House buyers are now citing tight credit conditions, construction costs and employment security as the biggest impediments to purchasing property,” NAB’s chief economist Alan Oster said.
Moving forward, Mr Oster said he expects properties in the sub-$500,000 markets to be the strongest as owner occupiers will start to play a bigger role in underpinning demand for housing – particularly in new property markets.
According to the property survey, Australians believe capital growth in this sector will be “good”, while growth in the blue ribbon markets is only expected to be “fair”.