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ISCOVER
Staff Reporter
Despite recent statistics that suggest First Home Buyers may be cooling off, one brokerage has labelled these borrowers their ‘most active market segment in 2013’.
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Yesterday, Loan Market revealed first home buyers represented 53 per cent of all company’s enquiries for a home loan.
“The pool of prospective first home buyers has been gathering for nearly four years now and as economic and buying conditions improve it’s becoming increasingly likely that we see the return of this important market segment,” Loan Market spokesperson Paul Smith said.
Mr Smith said that enquiry for a home loan was an important first step for first home buyers but it didn't necessarily mean the customer intended to purchase right away.
“Many first home buyer enquiries are from customers who are researching and gathering the facts about purchasing and taking their time to buy at the right time. With interest rates at historic lows and an increasingly foggy rate forecast, there is an underlying sense of urgency that this is the bottom of the interest rate cycle,” he said.
Mr Smith said that the same urgency on missing out on low interest rates was not being seen in the property market with clearance rates and stock levels signalling improving buying conditions.
“With lots of real estate stock on the market, these buyers are taking the time to wait for their ideal property and the right conditions to buy it in. First home buyers are both educated and patient in this regard.”
“It’s no secret that first home buyers have had their challenges getting into the property market over the past two years. The removal of some state-based tax exemptions and buying grants has made purchasing your first home more difficult than previously.”
