Have your aspiring first home buyer clients missed the boat
Australia’s property market has had four consecutive months of growth, after a worrying period of declines. This recovery has taken many by surprise, not least of which the long-suffering aspiring first home buyer who thought they finally had a way in. Is it too late for them?
Not so long ago, back in 2012 we had a series of interest rate cuts that spawned national property price activity that soon outpriced the average punter. Here we are in November 2019, interest rates have been repeatedly cut again, three in quick succession and another predicted, after three years of none at all. They’re saying, if this growth persists, we’ll be back at record pricing levels by mid 2020.
Auction clearance rates are back to healthy levels sitting above 70 per cent for a number of weeks now, days-on-market for listings are shorter, investors are out inspecting in droves and home loan approvals are getting more ticks than crosses.
In June this year, the market appeared to find a floor of sorts. Since then, we’ve had an overall increase of 2.9 per cent in national dwelling values. In the last month alone, we had the biggest increase since 2015: 1.2 per cent in a month.
The question is: are we potentially back in 2012 territory? Will first home buyers be outpriced by investors again? Or will the loosening of lending criteria give them a fighting chance?
Can your first-timer clients crack into this market?
In the last few months, I have had so many first home buyers reaching out to me, seeing (finally) a window to crack into the property market: low rates (1950s-level), a quieter market, and loosened lending rules. If it’s what your clients want, to get into the market now before it soars, we can get them there.
Want to help your first-home-buyer client beat the price surge ? Let’s get them pre-approved before the market gets any madder.