If you’re wondering whether it’s a fruitful time to become a mortgage broker, the answer is a resounding yes.
The Commonwealth Bank Home Buyers Index shows that for many capital cities, there is still plenty of need for mortgage brokers. Sydney, Melbourne and Adelaide specifically have been categorised as sellers’ markets. This means that demand for housing in the city is exceeding supply, driving prices up.
This is particularly true in Sydney and Melbourne, which saw respective dwelling price growths of 18.4 per cent and 11.5 per cent in the 12 months leading up to July 2015. Sydney’s markets made headline news with dwelling values hitting record high prices. The city experienced respective median prices of $921,500 for houses and $660,000 for units over the July quarter.
This shows that despite rising prices, the appetite for housing in these cities has not yet been satisfied. This has been attributed to a shortfall in supply, especially in Sydney.
As long as there is demand for property, there will be demand for mortgages. This is where mortgage brokers step in and act as the bridge between home buyers and lenders.
More properties hitting the market
As a report from CoreLogic RP Data shows, more and more properties have been listed for sale in the country this month. Up to 28 September, 26,829 houses and units were put up for sale.
Many capital cities are seeing the highest number of homes being listed for sale in quite a few months.
As this supply of homes rise this spring to meet demand, there will be more choices available to home buyers. This means there’ll be a greater spread of options and solutions out there to suit home buyers’ needs, which will lead to more mortgages being taken out.
Suffice to say, mortgage brokers won’t be lacking work anytime soon, especially in these capital cities.
