Mortgage Choice survey reveals property safer than shares

Almost one third of Australians will buy a property before 2009 is over, despite the current financial crisis, according to the Mortgage Choice 2008 Consumer Sentiment Survey.

The independent online survey, completed by 1,006 Australians has revealed that the credit crunch has made property seem safer than shares, with 31 percent indicating they will still buy a property within the next 12 months.

According to Mortgage Choice Senior Corporate Affairs Manager, Kristy Sheppard, the current economic climate has stabilised the property market in the eyes of everyday Australians.

“Overall, housing prices are relatively steady and to consumers, the property market appears more stable than the stock market, while interest rates are falling and rental vacancies remain historically low... many people recognise that and plan to take advantage of it.”

Over half of the respondents expected housing prices to fall over the next year, with 52 percent believing that the First Home Owners Boost will help improve housing affordability.

The financial crisis has also seen concern for job security overtake interest rates with 21 percent of mortgage holders anxious about their jobs, while only 11 percent expressed concern about interest rates, with 83 percent believing that interest rates will drop even further in the next year, making the property market more affordable.