Industry leader and head of broking franchise MoneyQuest, Michael Russell, has urged first home buyers not to delay entering the housing market in the hope that prices will soon fall.
“In the past couple of weeks a number of so-called property experts sat around a crystal ball yet again claiming the imminent arrival of a housing price fall,” Russell said.
“This has been a familiar pattern since 2008, whereby academics continue to predict corrections – anywhere from 10% to complete Armageddon.”
But in reality, said Russell, Australia has seen consistent year on year growth since 2012 with a little over 5% growth in the past decade.
According to figures from CoreLogic RP Data, the annual rate of house price growth across the combined capital cities in the year to May rebounded to 10%, after experiencing a trough in December last year at 7.4%.
Russell said he is concerned that many who have the capacity to enter the market today are deferring their decision based on “unfounded predictions”. He told Australian Broker
that this is where a broker should step in.
“If mortgage brokers wish to attract more first home buyers they need to take on the obligation to help to inform and educate.
“First home buyers crave knowledge and assistance and we are the perfect providers of both.”
Russell said MoneyQuest is investing in technology to help attract and educate this segment of the market.
“In addition to face to face, we are engaging many first home buyers via our social media platforms and digital marketing,” he told Australian Broker