First time buyer market 'most active in 2013'
The first time buyer market is the most active part of the residential real estate sector this ...
The first time buyer market is the most active part of the residential real estate sector this year, new figures have revealed.
Data from Loan Market showed 51 per cent of all financial enquiries made to mortgage brokers were from this demographic, while owner-occupied purchasers comprised 30 per cent.
Paul Smith, spokesperson for the organisation, said previous growth in the number of people buying a house for the first time was usually due to state-based government incentives - although this trend seems to be changing.
"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," he explained.
"However, many of the prospective first time buyers we are seeing now have significant [deposits] saved."
According to Mr Smith, while these figures are encouraging, it is likely that those buying their first property will remain cautious over the next few months.
Many of these potential purchasers are shrewd, he explained, which means they will only invest in residential property once the conditions are right.
However, current low interest rates are acting as an incentive, particularly for fixed-rate mortgage seekers, Mr Smith said, so now may be the time they start shopping around for the best deals.