Home buying intentions up amid soaring house prices

author-avatar By on March 16, 2021
Home buying intentions up amid soaring house prices

Australians continued to look to the booming property market, with home buying intentions up once again in February 2021.

That's according to Commonwealth Bank's (CBA) latest Household Spending Intentions (HSI) series, which shows intentions to buy a home are at its highest level since 2015. 


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 23, 2021. View disclaimer.

Based on CBA's analysis of Google searches and trends, as well as home loan applications, it expects the housing market to continue to be a key source of support for the economic rebound in 2021, thanks mainly to ultra-low interest rates. 

That's while house prices are rising by the highest margin in 17 years, which are now beginning to weigh on otherwise expanding consumer confidence

This is likely to continue, with CBA and also Westpac predicting house prices rises of 16% and 20% over the next two years respectively. 

Indeed, retail spending intentions softened in February 2021, despite recent rebounds in actual turnover figures

CBA saw strong increases in spending in a range of consumer goods, including clothing, groceries, furniture, digital apps, electronics, hobbies and toy stores, pets and more.

Weaknesses however were seen in dry cleaners and tailors, while travel spending intentions remained largely unchanged.

Weakness is still evident in spending on airlines, cruise ships, hotels & motels, timeshares, travel agents, car rentals and bus lines, although CBA expects the recent half-priced flights package (announced after these results were taken) to boost this spending. 

Overall results were mixed across the seven categories tracked, which also includes Motor Vehicles, Entertainment, Education, and Health and Fitness. 

“Fourth quarter data showed that economic growth improved further at the end of 2020, with a “V-shaped” recovery and we now expect that the Australian economy will grow by 4.4 per cent in 2021,” CBA Chief Economist Stephen Halmarick said. 

There were some interesting data points in this month's HSI release that occurred due to the changed landscape from COVID. 

Car buying intentions for example are lower than February 2020, despite a modest increase last month, as the trend of working from home reduces the need to commute. 

Entertainment spending meanwhile has increased substantially from 2020, not just on in-home entertainment like TV services, but in outdoor services as well like restaurants, movies and bowling alleys. 

See also: Vehicle purchases increase 31.8% in December 2020

CBAHIS

CBA HSI data for (top left to bottom right): Home buying, retail spending, motor vehicles, and travel.


Image by Agover from Pixabay 

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

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author-avatar
William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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