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ISCOVER
Staff Reporter
While first home buyers were quiet in 2012, it seems this market segment will be stronger in 2013.
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According to new data from Loan Market Group, first home buyers have been the most active segment of the market for finance enquiries this year.
Loan Market corporate spokesperson Paul Smith said that for the first six weeks of 2013, first home buyers represented 51 per cent of all enquires about the services of a mortgage broker.
“We've had nearly four years where first home buyers have been a secondary market to owner-occupied purchases and investors, but as the prospective pool of buyers grows larger so does the likelihood that we see the return of first-time purchasers,” Mr Smith said.
In the past, many first home buyer growth spurts were caused by state government-based policies being added or removed, but this increase in enquires was for first time purchasers planning to get into the market in 2013.
“The main issues that first home buyers have to overcome are usually their deposit size and matching their borrowing capacity to the type of house they’d like to purchase. However, many of the prospective first time buyers we are seeing now have a significant deposit saved,” he said.
“Additionally, the returns on savings deposits have been falling over the past several months and do not generate the same returns as the early months of 2012.”
Mr Smith said that while it was encouraging to see a lift in the demand from first home buyers, they would remain cautious buyers over the next several months.
“These are smart buyers who are waiting for the right conditions,” he said. “With low interest rates, especially for fixed products, there’s an added incentive for prospective buyers to start shopping around. Many of them are taking up pre-approvals that allow them to shop around for months knowing that their finances are in order if they do decide to purchase.”
