Housing market looking good - unless you're a broker

by AB27 Mar 2013

Things in the Australian housing market are looking good - unless you’re a broker, says Residex founder, John Edwards.

“The housing market is presenting growth on an Australia-wide basis and the trend is moving in an upward direction.”

However, while capital values are recovering, Edwards says sales volumes remain low – and this is particularly bad news for the mortgage industry.

“In fact, sales in January – February 2013 were the lowest seen on an Australia-wide basis since 1999. In many respects, the Reserve Bank and other managing agencies of the Australian economy should be more focused on this number than auction clearance rates and the upward trend in capital values. It is volumes that drive wealth generation and the economy.”

Without volume, he says, mortgage brokers, real estate agents, lenders, and even goods and services industries supporting home improvements suffer.

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  • by Mark Hewitt AFG 27/03/2013 10:58:56 AM

    I disagree, there are plenty of opportunities for brokers in this market. In fact AFG brokers are on track for a near record month.

  • by Catherine 27/03/2013 2:20:45 PM

    AFG have been reporting 'record' months since the beginning of 2012 - I'd suggest they're just getting a higher share. National Data isn't there to show the volumes are broad based.