Home buyer sentiment crashed in the June quarter, with Queensland and the ACT posting the largest decline, as rapidly growing house prices have become harder to afford, a NAB poll shows.
The number of buyers who thought “now was a good time to buy” plummeted by 21 percentage points to 23 per cent in Queensland. In the ACT sentiment dropped by 20 percentage points to 24 per cent, and in NSW there was a fall of 12 percentage points to 26 per cent.
In Tasmania, the number of optimistic buyers slumped by 11 percentage points to 25 per cent. Victorians’ confidence fell 6 percentage points to 32 per cent, while South Australians’ outlook slipped 9 percentage points to 35 per cent.
Across the country, positive home buying sentiment tumbled 11 percentage points to 29 per cent.
“I think it’s primarily a reflection of the fast price growth,” said Andy Kerr, NAB executive, home ownership.
“I think what we’re seeing is that high price growth is starting to take a bit of steam out of the [home buying] intention.”
Home buying sentiment hit a high point in the December quarter when two in five NSW buyers thought it was a good time to buy, and nearly half of Victoria and Queensland buyers were upbeat about purchasing a home.
The worsening affordability also weighed on investor sentiment, with the number of upbeat landlords falling by 6 percentage points to 25 per cent nationwide.