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A shortage of housing stock teamed with low interest rates are helping to drive the property market, which is translating into more business for brokers and agents alike.
LJ Hooker business analyst David Maher told Real Estate Business that the surge in business was unlikely to ease any time soon.
“Even when the first home owners grant is pulled from the market, we expect to see sales and prices continue to enjoy moderate growth,” Mr Maher said.
According to Maher, investors are starting to view the property market as an attractive option and everyday mums and dads are also filtering in once again on the back of the ‘emergency level’ interest rates.
“We currently have very low vacancy rates which in turn stimulates higher rents and higher yields. High yields are excellent for investors who are starting to see the residential property market as a safe bet,” he said.
And with increased sales activity comes increased business for loan writers.
Real estate LJ Hooker Financial Services recorded a 26 per cent increase on loan settlement figures compared to the same time last year.
“There is a distinct correlation between loan settlements and property sales,” Mr Maher said.
“Property sales are currently 25 per cent higher than this time last year, and we expect this trend to keep improving.”
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