New research has revealed that Australians are willing to pay more for residential property, despite the likelihood of interest rates rising.
The realestate.com.au Consumer Insights Survey found that around one in six (16 per cent) (1) property seekers were willing to spend 10% or more above the asking price when looking to buy a home.
The findings come despite the fact that two out of three (66 per cent) (1) property seekers who took part in the survey believed interest rates were likely to rise in the next three months.
Realestate.com.au spokesperson Peter Wright said the survey findings reinforced the boom the property market had experienced recently and peoples’ willingness to achieve the great Australian dream of home ownership.
“The most common perceived reasons for growth include a shortage of properties for sale (54 per cent) that has driven up demand, a resurgence in a growing economy (40 per cent) and the fact that household incomes are rising (11 per cent) (1),” Mr Wright explained.
“While we are now starting to see some stability, the realestate.com.au Consumer Insights Report reinforces the buoyancy the property market experienced in the first half of 2010.
“The report also indicates that consumers expect the property market to remain strong (50 per cent) (1) well into the second half of this year,” he added.
The survey also saw a positive trend in the job market with confidence growing by 11 per cent from April 2009 from 45 per cent to 56 per cent (1) during the May-June 2010 period.
* (1) The realestate.com.au Consumer Insights Report is an online survey conducted on a regular basis to investigate the attitudes of buyers, renters and sellers. The survey ran from 31 May to 3 June 2010 with 4,082 Australian property buyers taking part.
