First home buyers are flooding back into the property market lured by ultra-low interest rates and government support, with two of the nation’s biggest mortgage brokers experiencing a surge in loan applications from young buyers.
AFG chief executive David Bailey said the company's latest figures showed 22 per cent of loan applications lodged by its brokers in the latest quarter were for first home buyers, compared with the historical average of about 12 to 13 per cent of loans going to first time buyers. Mr Bailey said government incentives for first home buyers and rising prices were helping to fuel the strong demand.
Mortgage Choice chief executive Susan Mitchell said over the past two months the market had been “very buoyant,” with loan applications up by 25 to 30 per cent compared with a year earlier. Ms Mitchell also noted the surge in first home buyer activity, saying these buyers accounted for almost 25 per cent of applications, up from 13 to 15 per cent normally.Loading
The end of all these stimulus measures and supports simultaneously could result in a small lift in foreclosures, property data analysts SQM Research managing director Louis Christopher said, but he was not concerned about a "mass forced sale event".
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clancyyeates JennieDuke Propadee
clancyyeates JennieDuke Greater Fool Theory in full force.