First-home buyer optimism remains despite soaring property prices

“Soaring property prices “are yet to crush the home ownership dreams of first-home buyers,” says ME Bank.

But they aren’t doing much for the broader economy.

Interest rate cuts and looser bank lending have seen national housing prices rise more than 5 per cent since finding their trough in July.

The strength of the rebound has surprised many analysts and prompted economists to sound the alarm over rising household debt.

But ME’s latest Quarterly Property Sentiment Report found the return of the property boom hasn’t dulled the ambitions of aspiring home owners – even though ABS figures show they are gradually being priced out of the market.

More than half of would-be home owners (51 per cent) plan to buy property over the next 12 months, according to ME Bank’s survey, which canvassed 1000 Australians at the start of January.”

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