Ray White Now | MARCH 2021 - Page 13

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 53.44 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 .
• Record levels of government stimulus continue to support buyer sentiment .
Chart 5 : Loan pre-approvals
This chart compares the number of loan pre-approvals submitted via Loan Market brokers from 2018 , 2019 and 2020 . It shows lower levels of pre-approvals now compared to previous years .
# Loan Pre-approvals / 28 days
400 350 300 250 200 150 100 50
Jul Aug Sep Oct Nov Dec Jan Feb Mar
2018-19 2019-20 2020-21

“ This has resulted in over 57,691 enquiries being sent , a volume which is 35.1 per cent higher than the same period last year .”