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ISCOVER
Staff Reporter
Hundreds of jobs could be added to the mortgage industry over the next three years, the MFAA has claimed.
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MFAA chief executive Phil Naylor said a recent BIS Shrapnel report, which indicated there would be a recovery in the property sector, should encourage strong growth of the mortgage broking sector.
The mortgage broking sector, which now writes 42 per cent of all home loans written in Australia, is expected to see the best growth in NSW, Western Australia, Queensland and the Northern Territory – areas where BIS Shrapnel expects the strongest property recovery.
However the forecaster said “conditions in the remaining non-resource states will continue to be dampened by underperforming economies and an excess supply”.
“There are signs of greater activity, recruitment and investment by mortgage brokers in the recovery states. Growth is expected to return to NSW, which continues to experience a dwelling supply shortage, while the other states are experiencing accelerating populations on the back of resources investment,” Mr Naylor said.
“Continuing interest rates falls have seen affordability in their capital cities improve dramatically and we support BIS Shrapnel’s view that a property recovery will gain traction from 2013, as growth in resource investment spending eventually flows through to other sectors of the economy.”
BIS Shrapnel forecasts that purchasers will wade back into the market in greater numbers, translating to greater sales volumes and a pick-up in price growth over 2013 to 2015.
The forecaster also said that “while overseas economic conditions are expected to remain challenging, improving local economic conditions should move to the forefront of people’s minds and begin to have a more substantial impact on purchaser sentiment”.
“Increasing confidence is expected to see more first home buyers emerge and existing owner-occupiers upgrade, which will see greater demand for expert mortgage advice from MFAA members, who are established as a trusted source of information,” Mr Naylor said.
