With money markets forecasting interest rates to climb before Christmas and the government’s first home owner grant boost set to be reduced from September, agents should expect a surge in first home buyer activity.
Aussie CEO Stephen Porges said first home buyers were worried time was running out to secure a property before the 30 September deadline passes for the extended first home owner grant.
According to Mr Porges, Aussie has already seen a dramatic increase in first home buyer financing activity, with the number of broker appointment requests to assess their financing capabilities jumping by 20 per cent over the past five weeks.
“The economy was looking very uncertain back in April, and many Australians thought they would wait until things started to pick up before taking the plunge into home ownership.”
Mr Porges said a combination of increased confidence, a lack of housing stock on the market during the quieter winter months and the realisation the grant will be phased down from next month has meant many first home buyers are now rushing to lock in a property contract.
“There are still good deals around, but extra caution is needed in selecting the right property as the first home buyer’s grant has created a price bubble – which is exactly what the Reserve Bank has warned us against – in some areas,” he said.