First Home Buyers Looking to Buy Property
First Home Buyers have been the most active segment of the home finance market in 2013 for enquiry, according to leading mortgage broker Loan Market.
Loan Market spokesperson Paul Smith said that in March and the first week of April, first home buyers represented 53 per cent of all company’s enquiries for a home loan.
“The pool of prospective first home buyers has been gathering for nearly four years now and as economic and buying conditions improve it’s becoming increasingly likely that we see the return of this important market segment,” Mr Smith said.
Mr Smith said that enquiry for a home loan was an important first step for first home buyers but it didn’t necessarily mean the customer intended to purchase right away.
“Many first home buyer enquiries are from customers who are researching and gathering the facts about purchasing and taking their time to buy at the right time. With interest rates at historic lows and an increasingly foggy rate forecast, there is an underlying sense of urgency that this is the bottom of the interest rate cycle,” he said.
Mr Smith said that the same urgency on missing out on low interest rates was not being seen in the property market with clearance rates and stock levels signalling improving buying conditions.
“With lots of real estate stock on the market, these buyers are taking the time to wait for their ideal property and the right conditions to buy it in. First home buyers are both educated and patient in this regard.”
“It’s no secret that first home buyers have had their challenges getting into the property market over the past two years. The removal of some state-based tax exemptions and buying grants has made purchasing your first home more difficult than previously.”
Mr Smith said that pre-approval was a popular trend among first home buyers because it gave them the time needed to shop around for their ideal property and have the confidence in knowing what they can afford.
Loan Market enquiries March – April 2013
First Home Buyers 53%
Owner Occupied Purchases 32%