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Jessica Darnbrough
More than two thirds of brokers are pessimistic about their business prospects heading into 2011.
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According to a recent The Adviser straw poll, 67.5 per cent of brokers do not expect their volumes to increase next year.
Of the 492 respondents, just 32.5 per cent are optimistic about the coming 12 months.
Of the brokers that The Adviser spoke to, the general consensus seems to be that rising rates will dampen market activity moving forward.
Home buyers have all but pulled themselves out of the market as they worry about where rates will head – impacting on brokers bottom line.
Tiffen & Co managing director Gerard Tiffen said while he expects rates to slow overall market activity, there are still plenty of business opportunities out there for brokers.
“The good brokers will stay strong though and volumes will remain,” Mr Tiffen said.
His sentiment was echoed by Mortgage Choice’s chief executive officer Michael Russell who said there are still plenty of opportunities for savvy brokers.
“I can understand why some brokers are pessimistic about the future. However, we are still expected to enjoy 5 per cent growth year on year, so this will benefit broker business,” Mr Russell told The Adviser.
“Better yet, when business is slow, it provides brokers with the perfect opportunity to get in contact with their old client database and draw up a business plan for the year ahead.”
