More than one third of potential home buyers believe now is a great time to jump onto the property ladder.
According to the Latest Genworth Homebuyer Confidence Index, 39 per cent of homebuyers said they would buy now, as homebuyer confidence bounced back to levels not seen since this time last year.
Genworth chief executive officer Ellie Comerford said a drop in mortgage stress had helped to drive homebuyer confidence – with just one in five people now experiencing mortgage stress.
As per the Index, 22 per cent of homeowners are experiencing mortgage stress, slightly lower than the 25 per cent recorded in September 2011.
“While cost of living pressures and an increase in unemployment are likely to strain households, currently these problems are being offset by positive factors such as wage growth, low inflation and interest rate cuts,” Ms Comerford said.
First Home Buyers were also doing well, with 86 per cent easily meeting, or even overpaying their mortgage in the last 12 months – well above the 78 per cent average.
But while the result was positive, research director of RFi, Alan Shields said it wasn’t surprising.
“If they made a commitment to a mortgage in the last few months, then why wouldn’t they be prepared to pay it off?” he said