“The main issues that first home buyers have to overcome are usually their deposit size and matching their borrowing capacity to the type of house they’d like to purchase. However, many of the prospective first time buyers we are seeing now have [a] significant deposit saved.”
He says the returns on savings deposits have been falling over the past several months as well and don’t generate the same returns as the early months of 2012.
Smith says that, while it was encouraging to see a lift in the demand to purchase property for first home buyers, they will likely remain cautious buyers over the next several months.
“These are smart buyers who are waiting for the right conditions to buy in. With low interest rates, especially for fixed products, there’s an added incentive for prospective buyers to start shopping around. Many of them are taking up pre-approvals that allow them to shop around for months knowing that their finances are in order if they do decide to purchase.”