Nine out of ten Australians agree property prices are becoming unaffordable.
A recent survey conducted by Savvy has revealed 91.6 per cent of Australians believe property prices are becoming "unaffordable" in the current market.
The survey polled 905 Australians about their attitudes and behaviours regarding housing affordability.
9.8 per cent of those polled said they had purchased a property during the COVID-19 pandemic; 27.6 per cent said they are considering buying within the next twelve months.
Almost a third of respondents are "very worried" that the current housing market is out of the reach of ordinary Australians.
The main reason respondents cited for holding off on buying is that they are still saving for a deposit (33.2 per cent) followed by general housing unaffordability.
14.6 per cent of respondents said they were waiting to ride out the COVID-19 pandemic.
This leaves many would-be homebuyers in a double bind, as 28.6 per cent say that they're concerned if they don't buy soon, they'll be left behind.
It seems that COVID-19 and other measures such as HomeBuilder and the First Home Buyer Deposit Scheme has still left most would-be home buyers worried if they don't buy now, they'll be shut out forever.Bill Tsouvalas, Savvy
When asked why property has become so out of reach, 26 per cent cite foreign ownership as the reason, followed by record low-interest rates (20.3 per cent) and an oversaturated investment market (18.6 per cent).
33.9 per cent of people said that the end of JobKeeper/Seeker stimulus will force down prices, when asked if the measures had any impact on the real estate market.
Further, 29.8 per cent said they were prepared to devote 20 per cent of household income to home loan repayments; 25.7per cent said 30 per cent; a staggering 20.6 per cent said over 30 per cent+.
Devoting over 30 per cent of household income toward mortgage repayments is considered "mortgage stress," and 26.9 per cent of those surveyed said they are currently experiencing this.
Savvy Managing Director Bill Tsouvalas says that this should be cause for concern. "We've had a general feeling that the housing market is out of reach for Australians, but it seems that COVID-19 and other measures such as HomeBuilder and the First Home Buyer Deposit Scheme has still left most would-be home buyers worried if they don't buy now, they'll be shut out forever.
"The fact that almost a third of people are in mortgage stress is also alarming; it could be a prelude to a much bigger crash."
27 per cent said they would save more of a deposit to secure their place in the property market; 23.7 per cent said they're waiting for a price crash.
21 per cent are prepared to relocate in a regional or rural area.
According to the Real Estate Institute of Australia (REIA) Australian housing prices have soared by more than 500% with the median price for Australian housing inflated from $160,000 in 1996 to $825,000 in 2020.
REIA's latest report, Real Estate Market Facts, found that in the December quarter of 2020, the weighted average capital city median price for both houses and other dwellings increased in the Australian residential property market.
"The weighted average capital city median price increased by 6.0 per cent for houses and by 0.9 per cent for other dwellings," REIA president Adrian Kelly said.
"At $1,211,488, Sydney's median house price continues to be the highest amongst the capital cities, 46.8 per cent higher than the national average. At $490,000, Perth has the lowest median house price across Australian capital cities, 40.6 per cent," said Mr Kelly.