Across the country auction clearance rates are strong and getting stronger.
Low interest rates, government handouts and possible relaxing of lending criteria are encouraging Australians to take out a mortgage and buy a property.
Most of the country has auction clearance rates around 70 per cent; the tipping point between a buyers’ and sellers’ market. And, coming out of lockdown, Melbourne is likely to see a jump too.
Home buying confidence is at its highest in more than 12 months such that the Index of Consumer Sentiment “time to buy a dwelling” measure has increased 10.6 per cent.
While Australia is not out of the woods yet, things are looking up with fewer Australians on a repayment holiday from their home loan 26 per cent fewer customers have deferred loan repayments at the end of September, compared to August.
The total number of loan repayment deferrals is 129,000, down from 174,000 in August, and 210,000 in June.
The number has been gradually falling after peaking in May.
2021 is likely to see a continuation of this trend. In the recent budget, the Treasurer announced a wind back in legislation relating to Responsible Lending standards which should mean it will be easier to get a mortgage.
Mortgage brokers should be busy in coming months