First home buyer activity is increasing as they are poised to make a strong return to the real estate market, according to leading mortgage broker Loan Market.
New South Wales is leading the national surge as first time buyers there move quickly to beat the loss of stamp duty concessions at the end of the year.
Loan Market Chief Operating Officer Dean Rushton said enquiries from first time buyers were up 15 per cent nationwide while in NSW there had been a 30 per cent hike in enquiries last month.
Mr Rushton said the stable interest rate environment of the last 10 months had been a major factor in reigniting the first home buyer sector. Lender competition for new business through interest rate specials had also been welcomed.
He said an increase in activity in NSW followed the State Government’s Budget move to restrict stamp duty concessions for first home buyers by the end of 2011.
“This concession for first time buyers not paying stamp duty on established homes will cease from January 1, 2012, and it’s prompted a lot of people to assess their options now,” Mr Rushton said.
“That concession can be worth around $15,000, which is double the amount of the First Home Owners Grant. We are now seeing many people accelerating their plans to buy. First home buyer activity will only rise in the coming months to beat this deadline.”
Mr Rushton said the subdued housing finance market of the last 12 months had created a highly competitive home loan market
“We’ve seen fixed rates dip well below their normal position in relation to variable rates and rate-matching initiatives – a clear indication of a fierce market,” he said.
Mr Rushton advised first home buyers to speak to a mortgage broker before rushing to take up a particular offer to ensure they were getting the best product for their individual circumstances.