Seventy per cent of mortgage brokers believe that the housing markets in Sydney and Melbourne have yet to pass their peak, according to a newly published survey.
The poll, conducted through MyState’s national network of brokers, found 23% of brokers said markets were peaking now while 7% said markets will peak soon.
Of those who believed markets in these two major capitals would continue to grow, 43% said growth would continue yet slow down considerably, 21% said growth would be medium to strong, and 3.5% said they expected strong growth to continue. The remaining 3% said markets would peak next year.
MyState’s survey also looked at fixed rate trends amongst Australian borrowers and found that more were locking in their home loans.
Of the brokers polled, 61% said they saw a growing number of customers moving to a partially or fully fixed home loan. When asked what percentage of their clients had made this move, 24% of brokers said over half while 16% said one in four had shifted across.
Just under 37% of brokers said the amount of customers seeking to fix their mortgage rates had increased by 20-25% compared to six months ago. A further 23% reported an increase of 10-20% during the same time period.
These results showed that MyState’s broker partners were more positive about the Sydney and Melbourne housing markets than commentators in other financial sectors, said group executive of broker distribution Huw Bough
“This will be encouraging for home owners and those looking to get into the market. At the same time, survey findings indicate that home owners are growing wary about the ability of banks to keep rates at their current levels in the short to medium term, despite a historically low official cash rate of 1.5%.”
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