Housing market predictions for the year are looking positive for borrowers and brokers alike.
The Housing Industry Association’s National Outlook report forecasts new dwellings to break the 165,000 threshold for only the second time in a decade.
“Our latest set of forecasts suggests that the housing industry will be one of Australia’s good news stories over the next twelve months,” HIA senior economist Shane Garrett said.
“[New dwelling growth] will be driven by much stronger activity in markets like NSW, Queensland and Western Australia. However, challenges will remain in other states, more notably Victoria and Tasmania,” he said.
HIA thinks the Reserve Bank of Australia will leave its interest rate unchanged for the remainder of this year at least.
“This will underpin strengthening activity in housing, and arrest the deterioration in housing undersupply experienced over the past decade,” Garrett said.
Mortgage and Finance Association of Australia CEO Phil Naylor also thinks the housing market is picking up this year and this is positive for brokers.
“The signs indicated by the HIA are certainly evident. Mortgage brokers are already experiencing growth – now 47.3% of market – and are well placed to assist new homebuyers,” he said.
Finance Brokers Association of Australia CEO Peter White
also thinks the signs are looking up with housing pockets which have “been in the doldrums” starting to move.
“Areas like the Gold Coast in Queensland, in specifically in the luxury market of $1.50m+, are starting to show signs of more sales activity than historically. This is not an uncommon scenario [and] will mean more activity for brokers.
White also believes, partly contrary to HIA’s prediction, there will be a slight reduction in interest rates in the next month or so which will be followed by a stabilised period.
“This will create a great environment for home buyers and investors and therefore greater opportunities for brokers across the country.
“Refinancing will also be an active market in the later part of the year and it will be a good time to lock in a good fixed rate as I believe at the end of the year rates may start to kick back up again. More business for brokers – again – so that’s a good thing too.”