An aggregator has reported a recent doubling of first home buyer (FHB) enquiries despite last week’s data from the Australian Bureau of Statistics (ABS) showing commitments from the market segment had fallen 9.3% in May 2020.
Aussie attributed the 219% year on year rise in FHB enquires evidenced over the month to the low interest rate environment and extensive range of both federal and state government schemes currently available.
“With property price growth dropping off, along with the lowest interest rates on record, and a range of government schemes on offer, if you are in good shape from an employment and income perspective, now could be a good time to get into the market,” said Aussie CEO James Symond.
“While there is great enthusiasm amongst first home buyers, there are traps and a mind boggling array of mortgage products available in the market and as a result, they need to be properly informed and provided guidance from a broker to ensure they are making the right choice of finance.
“First home buyers needed to understand how much they could afford, especially if rates rise again and product suits their current income level and aspirations," he added.
Other groups within the industry have also reiterated the interest and activity they’re seeing from customers, indicating the worst of COVID's impact within Australia may have passed.
Fellow aggregator Mortgage Choice recently reported an influx in both leads and applications lodged, resulting in May 2020 outstripping the corresponding month last year despite the pandemic’s economic impact.
Similarly, Realestate.com.au attributed its flood of enquiries to the government’s HomeBuilder scheme, a connection further corroborated by the Housing Industry Association (HIA).
