Survey Reveals Two Out of Three Australian Buyers to Increase Budget to Find the Right Home

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With another Reserve Bank of Australia meeting this week, a survey has discovered the lengths that users will go to purchase a house in 2010. The survey revealed that over half of users would look for lower quality, smaller or further out homes and that further interest rate rises would result in many buyers ceasing their property search.

Our survey found that two out of three people thought that they would have to increase their budget in order to find a suitable property in a suitable location in 2010

The Australian property portal realestateview.com.au has found that further increases in interest rates and property prices are likely to affect the market this year.

General Manager Petra Sprekos said that following an Australia wide survey of 1100 users (conducted by the Property Sales Data division of realestateview.com.au), it was clear that buyers have a budget and that there is a point where increased costs will cause them to exit the market.

“We asked our users if they think prices will increase this year and only 6.4 per cent said no.

“Our survey found that two out of three people thought that they would have to increase their budget in order to find a suitable property in a suitable location in 2010.

“Buyers would also consider looking for smaller homes or homes that were ‘further out’ than their originally desired suburb, in order to respond to higher purchase and ownership costs. The survey found that 61 per cent would consider looking further out, 51 per cent would look for a home of lower quality and 54 per cent would look for a smaller home

“The survey also found that buyers are really concerned about interest rates.

“After a period of being quite relaxed - even expecting an interest rate increase can make buyers nervous. We found that a rise of 0.5 per cent would cause 18 per cent of buyers to cease looking for a home and an additional 0.5 would cause another 29 per cent to forgo their search for property,” Ms Sprekos concluded.

How much of an increase would cause you to delay buying?

  • 0.1%-0.5%, 18 per cent
  • 0.6%-1%, 29 per cent
  • 1.1%-1.5%, 24 per cent
  • 1.6%-2%, 10 per cent
  • Over 2%, 18 per cent

realestateVIEW.com.au is the 3rd largest property portal in Australia and is growing faster than all of the other major portals.* With over 70,000 properties online, realestateVIEW.com.au covers residential real estate, commercial real estate, rental properties and more

*Based on Nielsen-netratings unique visitors growth statistics for February 2010.

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Robert Larocca 9205 6622 or 0409 198 350

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