90% of Aussies think buying a house is getting harder
Price falls have done little to ease affordability concerns.
Mortgage Choice and CoreData's whitepaper, Evolving Great Australian Dream, found that 86.2% of Australians believe it's increasingly difficult for people to buy a free-standing house.
In spite of recent price declines, 9 out of 10 prospective property buyers indicated it was difficult to get into the property market due to affordability pressures. High prices have seen prospective buyers adjust their expectations, with 77% saying they were forced to buy a smaller property for affordability reasons.
"Owning a property has long been a cornerstone of the Great Australian Dream. However, with the growth in house prices, especially in metropolitan areas, the dream is evolving to encompass options beyond the traditional freestanding home on a quarter-acre block," Mortgage Choice chief executive Susan Mitchell said.
Mitchell said the most significant hurdle faced by home buyers was saving a sufficient deposit. While 31% said they would pay lenders mortgage insurance (LMI) and save a smaller deposit, only 5% said they would use a guarantor to get into the property market.
"Bucking the trend are home buyers aged 29 years and below, of which 21.8% had someone go guarantor on their mortgage," Mitchell said.