Rise In Upsizing This Spring
Sourced for The Real Estate Conversation
Research from Westpac has shown that a proportion of Australians considering upsizing their homes has nearly doubled since last year, while half are feeling more confident about the state of the property market.
Westpac’s Housing Sentiment survey revealed that more than half (51 per cent) of those surveyed are feeling more confident about the state of the market than 12 months ago, while 53 per cent were eager to take advantage of the current climate.
The survey also found that 62 per cent of participants intend on making some sort of change to their housing situation in the next five years, as a result of interest rates (20 per cent), falling house prices (18 per cent ) and the desire to live in a new area (17 per cent).
The desire to upsize proved has more than doubled since 2018, rising to 24 per cent from 11 per cent last year.
Will Ranken, General Manager of Home Ownership at Westpac, said record low interest rates have created a positive environment for home owners to not only get ahead on their mortgage repayments, but to also purchase their next home.
“Australians looking to upsize, many of which are families, are particularly motivated to purchase a larger space,” he said.
“When you consider more young people are choosing to live with their parents longer than ever before, it’s no surprise many are hoping to purchase a bigger home to help future-proof their family.”
When it comes to opportunities in the market, almost one in five (18 per cent) of next home buyers feel challenged by a lack of property supply listed on the market.
However, the findings showed relief might be on the way, with Australian home owners now 50 per cent more likely to sell their home compared to last year, with one in ten (10 per cent) intending to sell in the next 12 months.
Mr Ranken said there were clear signs that demand was on the rise.
“We’ve seen a recent rise in auction clearance rates, so it could be an opportune time for sellers to capitalise on growing demand, particularly in the lead up to spring; the time of year when house hunters tend to be the most active,” he said.
With an increasing number of buyers looking to enter the market, more than half of Australians (55%) think it’s important they’re informed about changing market conditions, and 42 per cent would like to be better educated so they have an edge against the competition.
