Rents driv­ing buy­ers back into the mar­ket

The Courier-Mail - Property - - WHO’SHOME - Michelle Hele

QUEENS­LAND has recorded its strong­est July fig­ures for five years with firsthome buy­ers re­turn­ing to the mar­ket, ac­cord­ing to mort­gage bro­kers AFG.

It says it pro­cessed more home loans last month than for any July since 2007.

While one month’s fig­ures are not ex­actly go­ing to be able to show a firm trend, a sig­nif­i­cant move up­wards may at least be a sign of more pos­i­tive moves in fu­ture.

First-home buy­ers ac­count for only about 14 per cent of the Queens­land mar­ket, but soft prices and ris­ing rents seem to have some of them at least de­cid­ing now is the time to make a move.

Ac­cord­ing to the lat­est Her­ron Todd White month in re­view, those fac­tors are also what has in­vestors reemerg­ing in the mar­ket.

While there was no in­ter­est rate drop this week, pre­vi­ous drops have had in­vestors com­ing out for a look at the mar­ket again.

HTW reck­ons most buy­ers recog­nise that ven­dors who don’t have to sell have prob­a­bly hit the bot­tom in terms of ask­ing prices and now might be a good time to buy.

It says feed­back from agents seems to be that the mar­ket for prop­er­ties un­der $500,000 is look­ing stronger.

That mar­ket is of­ten dom­i­nated by first-home buy­ers and in­vestors so that would seem to re­in­force the early data that those two groups of buy­ers are com­ing back.

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