Current at: 23 June 2006
Confidence within the stagnant Australian housing market is showing signs of a recovery, with 2/3 of Aussies saying they have either bought or renovated in the past 12 months, or intend to in the coming year. However, affordability is confirmed as the main barrier for those not currently considering purchasing a new home.
The facts are revealed in a new survey conducted by homesite.com.au and the Housing Industry Association (HIA) – the most comprehensive summary of current housing sentiment.
In News South Wales, there is a healthy optimism towards housing and renovation. 38 per cent of households surveyed had renovated or intended to do so in the next 12 months. A further 29 per cent had or intend to buy a new home over the next year.
Nationally, the survey of 28,000 Australians reveals:
- a healthy optimism towards housing and renovation – 69 per cent of Australian households have been active in the new home or renovating market in the past 12 months, or intend to be over the next year.
- affordability is the biggest barrier to not buying a new home - 58 per cent of respondents who had not bought new property in the past year, nor were looking to in the next year, said they simply could not afford it
The survey of more than 7,800 people across New South Wales (NSW) reveals:
- 38 per cent of households surveyed have or intend to renovate their home over the next year
- 29 per cent have or intend to buy a new home over the coming year. This is consistent with the national average.
- 23 per cent of survey respondents from NSW intend to buy a new home over the next year, 74 per cent intend to live in it while 26 per cent intend to purchase it as an investment property.
- the average cost of renovations in NSW was reported to be between $10,000 and 25,000. This is expected to remain the same next year.
- of those intending to renovate, 55 per cent will be repainting. Other popular renovation jobs were general repairs, landscaping and bathroom makeovers.
- surfing the internet and strolling through display homes were the two most common information sources for potential new home buyers.
HIA’s Executive Director NSW, Mr Wayne Gersbach, said that with the state’s housing industry well down on previous years, it is pleasing to see that despite almost insurmountable hurdles, many within the state are maintaining a positive sentiment towards new housing and renovation activity.
“The increase in the number of first home buyers intending to purchase a home is welcome news, as is the increase in the number of households intending to renovate in the next year,” Mr Gersbach said.
Mr Gersbach continued “The housing affordability problem, however, still looms large with the report clearly showing it to currently be the biggest barrier to homeownership across the state. That aside, the survey provides a fascinating insight into the highs and lows of home building and renovation among NSW households.”
“The report card for the state’s builders is a good one with high levels of satisfaction among households who have had a home built or renovated, while for local councils, red tape and regulation were almost universally the biggest headache.”
homesite.com.au managing director, Nic Jones said, “This survey gives builders and those in the renovation industry an edge when predicting market trends. One of the many marketing virtues of the internet is the ability to collect data on consumer thinking and behaviour. We believe this national survey will assist those in the housing industry plan and manage future projects. I look forward to building on the strength of our relationship with the HIA.”
The online survey – the most comprehensive report on current attitudes - had more than 28,000 respondents nationally and ran for one month from March 13 to April 13 2006 . Future homesite.com.au – HIA Housing Sentiment Reports will be released bi-annually.