If you’re thinking about joining the mortgage broker business, you might just be tipped over the edge, with recent numbers painting a very enticing picture.
A quarterly review from CoreLogic RP Data reveals Australia’s soaring real estate demand and growth over the July quarter of 2015. Residential property in the country reached a total estimated value of $6 trillion.
Over the 12 months leading up to July, housing values across the capital cities rose by 11.1 per cent.
Unsurprisingly, the two biggest cities to see the heftiest and most rapid growth were Sydney and Melbourne, which experienced respective increases of 18.4 per cent and 11.5 per cent.
What all this shows are rising prices driven by inclining demand. When there’s demand for housing, there will no doubt be demand for home mortgages. If you’re looking to stick around in the mortgage broker business for the long term, there’s even more good news for you.
While investment bank Morgan Stanley says that Australia’s housing boom has reached its peak, it may not be much of a disadvantage to the home loan side of the market. CoreLogic’s review shows that housing construction approvals were at high levels, with 220,423 dwellings approved for construction over the 12 months to June. This is in fact a record high, and will bear much fruit for mortgage brokers when the housing is complete and buyers begin hunting for loans to finance their newly-purchased home.
What all this means for current or potential mortgage brokers is that this climbing demand will bring in plenty of fruitful business to your doors. With housing values at such highs, there will be much to gain from the market. Even if prices begin to stabilise, the supply of housing coming through the pipeline will ensure plenty of demand for mortgages in the near future.