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Staff Reporter
Data from Loan Market Group has confirmed first home buyers in New South Wales are acting quickly to gain pre-approvals in an effort to secure finance before the stamp duty concession runs out at the end of the year.
Loan Market chief operating officer Dean Rushton said in the past three weeks, 60 per cent of the company’s brokers in NSW were reporting a spike in the number of pre-approved customers finding properties.
Mr Rushton said in normal market conditions, a pre-approved customer can take up to three months to decide the time is right to purchase a property.
“The increase in activity around pre-approvals is a clear indication that parts of the NSW property market are due for increased competition,” he said.
“What we’re starting to see in the NSW market right now is a similar scenario to the end of 2009 when the government withdrew the increased First Home Owners Grant. Market demand has been pulled forward and buyers are accelerating their purchasing plans.
“Pre-approved customers are acting more decisively in response to the removal of a government concession that can save thousands of dollars.”
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