Rents driving buyers back into the market
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.