While statistics indicate the first home buyer (FHB) market is pretty weak at present, one finance and insurance company believes market conditions favour this market sector.
Speaking to Real Estate Business’ sister publication The Adviser, Finsure’s John Kolenda said that with interest rates low and house prices stagnant, market conditions now favour new-to-market buyers.
“I think the market conditions favour first home buyers,” he said.
“As such, I believe we will see signs of recovery in that market. Interest rates are sitting at historically low levels and there is speculation that they could fall even further over the coming months.
“In addition, home values are moving sideways, so these factors combined should be enough to encourage FHBs into the market.”
Mr Kolenda’s comments are supported by RAMS Home Loans, which saw an increase in first home buyer enquiries over the past six months.
The brokerage claimed it had seen an unprecedented pick-up in first home buyer enquiries since the beginning of the year.