A majority of agents are gearing up for an influx of first home buyer activity over spring, new research has found.
More than 70 per cent of the 449 respondents to the latest Real Estate Business straw poll expect first home buyers to be the most active segment over the next three months.
In addition, 16.5 per cent of respondents expect upgraders to be the most active segment over spring, while 10.9 per cent believe investor activity is on the rise.
Late last month, Century 21 chairman Charles Tarbey told Real Estate Business that first home buyers and first time upgraders would dominate the market during the traditionally hot spring selling season.
“Most activity will be in the first home buyer and upgrader segments. People that are looking to buy property under the $800,000 mark will be very active over the coming months,” Mr Tarbey said.
“Rents are rising but property prices, in many instances, are tracking sideways, which is in turn encouraging first home buyers to get their foot on the property ladder.”
These comments were largely echoed by McGrath Real Estate chief executive John McGrath, although first timers were looking at property as an investment rather than as a home.
In his company's Market Review – Spring 2011 report, first time upgraders and young investors are expected to play a significant role in the months ahead. It said this was due to an increasing number of young people choosing to purchase an investment property ahead of their first home.
“An increasing number of young people are choosing to buy an investment property ahead of their first home. People still want to enter the market and if they can’t afford it, they will stay at home longer, save for a bigger deposit, or buy with family or friends.”
“Most transactions in investor and upgrader markets have been sub $750,000, with fewer transactions at the premium end,” Mr McGrath added.
“Record high refinancing indicates buyers are taking advantage of better deals so they can upgrade or at least reduce the interest rates on existing properties.”