The final consideration that we look at when measuring the volume of demand in the market and arguably the most significant is the number of people obtaining pre-approvals for finance . Pre-approvals are a key leading indicator to buyer confidence knowing they have the financial capacity to buy the property . Our partners at
Loan Market are seeing record numbers of pre-approvals across the country with 87 per cent more than this time last year ( refer to Chart 5 ).
As we continue to see strong numbers across these buyer metrics , we often ask ourselves why . So what factors are contributing to buyer confidence ?
• Interest rates are at record lows . Importantly , the general consensus among economists is that they will remain at these low levels for the foreseeable future .
• Banks and lenders remain very supportive of lending for residential property .
Chart 5 : Loan pre-approvals
This chart compares the number of loan preapprovals submitted via Loan Market brokers over the past three years .
“ This has resulted in over 60,470 enquiries being sent , a volume which is 56 per cent higher than the same period last year .”