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By: Jessica Darnbrough
Investors and upgraders will provide good market opportunities for brokers moving into 2011 while first home buyers remain a sound prospect, according to QBE LMI’s chief executive officer Ian Graham.
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Mr Graham told The Adviser upgraders were starting to step up and fill the gap created by the decline in first home buyer activity since the federal government’s boosted FHB stimulus was withdrawn.
According to QBE LMI’s mortgage update report, compiled in partnership with BIS Shrapnel, just 25 per cent of Australians are looking to purchase a dwelling within 12 months.
But while the withdrawal of the first home owner grant boost scheme and a spate of rate hikes has had a stifled new buyer demand, Mr Graham said the first home buyer sector should remain relatively strong throughout 2011.
The report anticipates more than 110,000 loans will be written for first home buyers in 2010 – a healthy 27 per cent above the low point of loans to first home buyers in 2003/04.
“The research by BIS Shrapnel shows strong population growth in the first home buyer cohort (25 to 39 year olds) totalling 3.2 per cent over the three years to June 2012. The solid growth in this age group will result in a bigger pool of first home buyers in the market which will support demand in the future,” Mr Graham said.
“In terms of opportunities for brokers, while I believe FHB are still a fairly strong market, the focus is shifting towards upgraders and investors. They are coming through very strongly at the moment and I expect demand from these two core areas to increase over the coming years.
