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James Mitchell
Brokers will be put to the test in coming months as consumer appetite for mortgages shrink.
According to recent data from the Australian Bureau of Statistics, the total value of owner occupied mortgages fell 4.6 per cent in January.
In addition, the number of first home buyer loans fell from 15.8 per cent in December 2010 to 15.2 per cent in January 2011.
“Given the general malaise in consumer spending, these figures are not unexpected. Nationally, the average is closer to a 25 per cent fall in sales numbers based on 2010 data,” Real Estate Institute of Australia (REIA) President David Airey told The Adviser.
Mr Airey said the figures were consistent with a downward trend in property prices over the last few months.
“There is still business to be had. But like the real estate industry, the broking sector is mostly made up of smaller operators and only the strongest will survive.”
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