First-home buyer lending enquiries at two-year high: Loan Market

First-home buyers have emerged from hibernation becoming a dominant segment of the housing finance enquiry market, according to mortgage broker Loan Market.

First-time buyer enquiry levels were at their highest in almost two years after activity plummeted following the cessation of the federal government boost in 2009 and a sequence of interest rate rises during 2010.

The segment, who seem poised to spend, represented 51% of loan enquiries to Loan Market during October, according to Loan Market chief operating officer Dean Rushton.

“We’re finally starting to see signs of optimism and more confidence from that segment of the market. And predicted further rate cuts from the RBA would help to build that confidence,” Rushton says.

Tasmania had the highest number of enquiries followed by Queensland, Victoria, the Australian Capital Territory, South Australia, Western Australia and the Northern Territory.

“After a few years of hibernation, first-home buyers are back and are now the dominant section of the market for enquiry,” Rushton says.

Rushton notes the end of stamp duty concessions for first-home buyers in New South Wales from the end of 2011 year has boosted activity in that state.

“The softer real estate market is another encouragement for first-time buyers if they are in a position to be active in the market,” he adds.

One in 10 first-time buyers are choosing to make their first real estate purchase an investment property. 

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