WHY IS THERE BUYER CONFIDENCE AT THE MOMENT ?
SUMMARY
• Unemployment numbers no where near what was forecasted .
• First home buyers scheme extended .
• APRA pulling back on lending criteria making it easier for people to borrow .
There are many reasons for the current buyer demand . The most significant of these reasons relate to finance .
If there are future risks in the market , why should buyers enter the market ?
With interest rates at all time lows and with banks being supportive of purchasers , we are seeing many buyers wanting to take advantage of these factors . Obtaining secure credit on excellent terms while they are available , is certainly influencing demand . This is not only the case with first home buyers , but across all sectors of the market . Fortunately , we continue to see confidence in buyers with job security working in industries not materially impacted by the current economic environment .
In any market environment , there remains a significant number of buyers who are looking at buying and selling within the same market . When you consider this , market conditions generally don ’ t weigh in as much on the decision for those looking to upsize , downsize or relocate .
For buyers , to try and ‘ game the system ’, and wait to pick the bottom , it ’ s a difficult game to play . Things can move against you , and you risk being able to get that thing that you really want , especially if it ’ s a family home . Longer term , there seems broad agreement that Australia ’ s fundamentals post-virus should remain strong . Property investment has , and will always be a long-term investment .
If finance continues to be provided on the current terms , the purchasing power of buyers is expected to remain strong and be the main driver of buyer confidence .
Strong crowd at the auction of 8 Rushall Street , Pymble , NSW
12 The information is general information only , not financial advice , and does not take into account your individual objectives , financial situation or needs .