WHY IS THERE
BUYER CONFIDENCE AT THE MOMENT?
SUMMARY
• Interest rates are at all time lows.
• Confidence in buyers with job security remains.
• Current finance terms may drive buyer confidence into the future.
There are many reasons for the current buyer demand.
The most significant of these reasons relate to finance.
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.
If there are future risks in the market, why should buyers
enter the market?
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.
Brisbane couple, Kate and Chris, both accountants, said
it’s extremely tough being buyers at the moment.
“Competition is fierce in Brisbane’s inner north. It’s very
clear from numbers at open homes that stock is short and
everything we are interested in is snapped up extremely
quickly,” Kate said. “There must be some very happy
vendors out there!”
Ray White Gladstone Park Director and Auctioneer Phillip Mercieca - left - and Sales Consultant Dom Zampaglione - right
with buyers Lara and Tyrone - middle - 52 Clarke Drive, Gladstone Park, Victoria
12
The information is general information only, not financial advice, and does not take into account your individual objectives, financial situation or needs.