Weekly wrap - Friday 11th December
Lauren Hall nominated a finalist for the national REB Awards
A massive congratulations to Lauren Hall, who has again this year, made it through as a finalist for the prestigious and national REB (Real Estate Business) awards, as Residential Mortgage Broker of the Year. Lauren deservedly took out the inaugural award last year, which was really exciting, and is back as a finalist this year again. No pressure! And a big shout out to our fellow Loan Market compatriot, Nitish Kumar, from Loan Market Canberra, who is also a finalist. That makes two big guns up against each other, so that should be exciting. We are looking forward to this event in 2021.
As a team, we recently celebrated our Christmas party. It's really nice to wrap up a challenging, but also a very rewarding year. It was great to spend a couple of days together, enjoy a few experiences, but on top of that, say a big thank you to everyone who's supported us this year, and allowed us to continue to run at the speed that we do. We are looking forward to closing out the year strongly, and really hitting the ground 2021 as fast as we can. When we look back to nine months ago, we weren't sure if we were going to have a business. There was a lot of uncertainty, so to be able to come out the way we have, helping clients, and considering the strength of the business, is really exciting. Hence the Superhero Saturday. It's pretty much Superhero Day every day here at the office at the moment!
Lead up to Christmas
A 14-day finance clause right now is very difficult to pull off for a lot of the banks. They are really pulling the lever back on applications needing to have been submitted by the 30th of November.
So, if you're going through the contract, we would definitely recommend you to chat with your broker first. Six in ten Australians use a broker, so you'd be talking to a broker no doubt, just to check that the bank that you're working with is able to meet timelines and timeframes, and also find out when your solicitor closes, and when they reopen. Really small items now can have a huge flow-on effect going forward.
Good news in the market
We're always keen to listen to what is happening in the economy. Last week, an economist from one of the major banks shared some really positive insight.
While in September only 20% of their clients actually renewed their loan deferrals, 75% are now back on to their normal home loan repayments. They only needed three months or so to be able to go back to normal, which is amazing.
Remember as well how we went into recession? For the September quarter, we actually had growth of 3.3%. So, technically we’re out of that recession. Probably no one expected that it would end so quickly.
There are now more jobs advertised as being available, than there were pre-COVID as well. To see that employers, including small businesses, now want to take on staff, is very positive.
As far as the housing market is concerned, we're hearing there are people lining up outside open homes. Up to 40 groups through an open home in the middle of the week have been seen.
On the Gold Coast, the Ray White Surfers Paradise group have their big event auction coming up at the end of January, which they do every year. It is a massive event and they are well on track to have a hundred auctions for the day. The clearance rates at the moment for auctions are above 80% nationally which is unheard of and a sign of confidence coming back into the market.
As Australians, there are probably two things we're very emotional about. One is sport, and two is property. Knowing that interest rates are going to stay as low as they are for the next three years gives a lot of confidence in purchasing, knowing we’re not going to jump in the market at 1.99% and find ourselves with a 5% interest rate 18 months later. It's good to see that.
We are looking forward to leaning into these last couple of weeks to end the year really strong as a team. We are taking a well-deserved break over that period, and look forward to hitting the ground running again in early January. If there is anything that you need in the meantime, we are around in the lead up, the whole way up until Christmas, and open for a chat.