PHOTO: Tony Alexander
The first survey for 2021 tells us that FOMO (fear of missing out) is as strong now as it was heading into Christmas, and agents near universally expect that house prices will rise. There are also very strong numbers of people attending Open Homes as well as auctions.
However, in contrast with the Tony’s View Mortgage Advisors Survey released recently, which showed firm recoveries in the presence of first home buyers and investors in the market according to the advisors’ observations, our survey reveals small declines. This divergence in results from two surveys may reflect the fact that mortgage advisors are likely to be very busy with potential clients seeking information on the changing landscape regarding LVRs (loan to value ratios). Many people are also likely to be enquiring about access to the new 2.29% one-year fixed mortgage rates now being offered by most lenders.
In contrast, agents will be observing actual market presence as opposed to check-up enquiries potentially driven by rule changes. The sheer speed of price rises over the final four months of 2020 is likely to have accelerated the normal economic process of demand easing as prices rise.
Nevertheless, with a net 46% of responding agents saying they are seeing more first home buyers and a net 31% saying they are seeing more investors, demand for housing around the country remains very strong.
READ THE FULL REPORT HERE: Tony Alexander_Report_February_2021 (1)