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The latest Mortgage Choice Home Loan Report has revealed growing optimism among Australian home buyers, with sentiment significantly improving in the December quarter.
The report, based on a nationally representative survey of 1,000 consumers and home loan data from Mortgage Choice, explores trends in home loans and the intentions of borrowers and prospective buyers.
Mortgage Choice CEO Anthony Waldron said: “In our first Mortgage Choice Home Loan Report of 2025, we explore Australians’ property ownership goals for the year ahead.
“Encouragingly, our survey reveals that sentiment improved significantly in the December quarter, with respondents saying they feel confident and excited about their property plans.”
Waldron also noted, however, that while sentiment is rising, Australians are still facing obstacles on their path to property ownership, including high property values, a lack of affordable supply and uncertainty when negotiating purchases.
"To me, this says borrowers could be missing an opportunity to lower their repayments simply by reviewing their loan,” he said.
The Great Australian Dream ‘alive and well’
The research affirmed that the “Great Australian Dream” of home ownership remains strong, with Australians still viewing property as the best path to financial security. The survey found the following reasons for buying property:
• 62 per cent to build long-term financial security or wealth.
• 54 per cent to prepare for future life stages, such as starting a family or retirement.
• 46 per cent see home ownership as a strong investment strategy.
“Owning a home has long been the Great Australian Dream, and despite the challenges of getting into the market, our survey shows that Australians still see property as key to building their wealth," Waldron said.
“When you consider that national home prices have risen over 46 per cent over the last five years, it’s unsurprising that Australians hold such a strong desire to own property.”
Buyer confidence rising
The report also highlighted that buyer confidence is on the up, particularly as speculation grows that home loan interest rates may start to fall in the first half of 2025. Of those planning to buy property this year, 23 per cent stated that the interest rate environment is making them more confident, an increase from 17 per cent in the previous quarter.
The most notable increase in confidence was seen in Western Australia, where 30 per cent of prospective buyers reported feeling more confident about purchasing, up from 16 per cent in the September quarter. Queensland buyers also showed a marked increase, with 27 per cent now feeling more confident, compared to 16 per cent in the last quarter.
Excitement among buyers is also on the rise, with 37 per cent of prospective buyers reporting they were excited about their purchase plans, an increase from 33 per cent last quarter.
Additionally, the survey revealed a growing trend of Australians planning to buy property on their own.
Forty per cent of prospective buyers expressed this intention, a 3 per cent increase from the previous quarter. This trend was particularly pronounced among Generation Z, with 51 per cent of respondents in this group planning to buy alone, up from 46 per cent in the previous quarter.
[RELATED: NSW investors increasingly turning to Queensland and Victoria]
