JUNE EDITION
13 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 64 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 ? 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 .
# Loan Pre-approvals / 28 days
1,800 1,600 1,400 1,200 1,000 800 600 400 200
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
2018-19 2019-20 2020-21
“ This has resulted in over 42,590 enquiries being sent , a volume which is nine per cent higher than the same period last year .”