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First time buyers and investors have dominated housing finance enquiries, new research has revealed.
Enquiries from first time buyers have hit their highest level in two years – representing 51 per cent of total enquiries.
Loan Market chief operating officer Dean Rushton said enquiries from first home buyers to the brokerage during October were strong in every state and territory.
Tasmania had the highest number of enquiries with 71 per cent followed by Queensland on 54 per cent, Victoria 53 per cent, the Australian Capital Territory 50 per cent, South Australia 48 per cent, Western Australia 44 per cent and the Northern Territory 41 per cent.
“After a few years of hibernation, first home buyers are back and are now the dominant section of the market for enquiry,” Mr Rushton said.
“A more favourable interest rate climate, helped by the latest RBA rate cut, is one reason first home buyers have re-emerged.”
Mr Rushton said the end of stamp duty concessions for first home buyers in New South Wales from the end of 2011 are boosting activity in that state.
“The softer real estate market is another encouragement for first time buyers if they are in a position to be active in the market,” he said.
“We’re finally starting to see signs of optimism and more confidence from that segment of the market. And predicted further rate cuts from the RBA would help to build that confidence.”