The confidence of prospective home buyers and mortgage holders is ever increasing due to falling house prices, increasing wages and a slew of interest rate cuts.
The recent Genworth Home buyer Confidence index, which looks to assess the sureness of those in the real estate market, found that confidence rose 2.1 points in the month of September. This brings total confidence to 98.4 points, which is the second highest since the survey began five years ago.
The survey found that just 11 per cent of first home buyers felt deterred from buying a home because of an inability to make the deposit. 71 per cent of first home buyer respondents also said that they would be willing to pay extra to stay in an area they know and enjoy. The median price of that extra amount, is between $20,000 and $30,000.
The CEO of Genworth, Ellie Comeford, said that this confidence bucks international trends of uncertainty. Much of the sureness comes from the Reserve Bank, which has cut interest rates by three quarters of a per cent since March.
"When we look at our index, it really does respond to the RBA cash rate. Consumer sentiment really is moving in the right direction," she said.
