First-time buyers to dominate in 2012

First-time buyers are expected to be the most active player in the Australian home finance market during 2012, a national survey has found. The poll of its own brokers by leading mortgage broker Loan Market found 36 per cent believed first-home buyers would dominate the housing finance market this year. Loan Market chief operating officer Dean Rushton said the survey of 252 Loan Market brokers found 33 per cent thought property investors would be the major consumer group. Mr Rushton said 30 per cent believed people refinancing would be most active and just 1 per cent thought self-employed borrowers would surge. ‘‘Our brokers are divided on which consumer group will dominate in 2012, but the majority think first time buyers will be the most active,’’ he said. Mr Rushton said first-home buyers were the consumer group to re-emerge from hibernation during 2011, spurred on by the Reserve Bank of Australia lowering the official cash rate twice during the final quarter of the year. ‘‘2011 was a savings year for many potential home owners and with the likelihood of further interest rate reductions and softened property prices, 2012 appears to be primed for first home buyers to enter the market,’’ he said. Mr Rushton said investors were another growing market force and there was evidence last year of first-time buyers also targeting investment properties as their entry point to the property market. ‘‘Refinancing activity is also set to continue in 2012 with borrowers having a greater capacity to switch lenders and secure a better deal,’’ Mr Rushton said. ‘‘There can be as much as a percentage point difference between the variable home mortgage rates currently on offer and people are starting to realise it’s worth shopping around.’’ Mr Ruston said Australian consumers were more upbeat than they were this time last year despite uncertainty about the European debt crisis. ‘‘Australia still looks well prepared to weather the impact of the European crisis on the world economy,’’ he said.