NSW bucks predicted FHB drop-off

by Adam Smith17 Feb 2012

The expected first homebuyer drop-off in NSW has not come to pass according to one broking business.

Forecasters had tipped a massive decline in the state's first homebuyer market for January as purchases were brought forward to beat the December 31 deadline for changes to stamp duty concession. However, Loan Market has claimed first homebuyers remained active even after the cut-off.

The company said its enquiries from furst homebuyers rose 15% from the beginning of 2012. A Loan Market spokesperson said the number of first time buyers in the market had grown from 43% in December to 58% in February.

Loan Market put the increased activity down to positive response to the Reserve Bank's interest rate cuts in November and December of last year. This combined with increasing rental pressure in the state had ensured stamp duty had not proven a deterrent to first time purchasers, the company said.

Related stories:

FHB figures inflated by buyer rush

Stamp duty deadline to spur FHB rush


  • by Rizza 27/02/2012 4:02:53 PM

    Brokers are obgtlaied by law to present all offers to their owners.Professional brokers do this, reputation is all in this business. Those sales people whose primary occupation is other than real estate might play around with this rule but they don't last in the business. More problematic for sellers are brokers who encourage their owners to accept a lesser commission by limiting the playing field to only buyers the selling broker brings in. This is not in the best interest of the seller, as it discourages co-broking and limits the possible buyers who will see the subject property. Therefore the seller leaves the closing table with a less net, despite paying a point or two less in commission.