Spring buyer numbers for 2024 set to surge

While spring is always a busy time for the market, this year it appears that the relative stability of interest rates – albeit still at a recent high – has given some hopeful new home owners the confidence to make a move.

Subsequently, the firm believes that agents should brace for almost a quarter more buyers out in the market this year.

Across Loan Market’s network, the firm reported that Victoria recorded the highest year-on-year surge in pre-approval applicants, with a 40 per cent increase over last year. This was followed by Queensland, with a jump of 29 per cent, and NSW and the ACT which increased by 13 per cent.

Loan Market broker Tommy Nguyen said that it is clear “there are more people looking to get into the market this spring”.

“We’ve seen the cash rate hold steady at the last seven RBA meetings and that’s provided buyers with more certainty around what they can borrow,” Nguyen commented.

He feels that the cash rate hold, coupled with a higher level of listings this year, has been particularly motivating for first home buyers and upgraders, who are leading his pre-approval enquiries.

Nguyen said he anticipates that the firm will continue to see enquiries trending upwards alongside warming springtime temperatures.

“A pre-approval is an important first step for many people to get the attention of sellers and real estate agents. As we see more listings and auction volumes take off from this weekend, I’d expect to see pre-approvals rise further, again.”

Of the buyers who will be out in force this year, it appears they come with somewhat higher levels of finance in their back pockets.

Over the last 30 days, Loan Market showed that buyers in Western Australia had increased their borrowing totals by 19 per cent on last year, taking a loan of roughly $538,767 for a dwelling in the state.

In NSW/ACT and Victoria, buyers borrowed an average of $757,920 and $626,04 respectively, a 9 per cent increase for each.

South Australia saw a 7 per cent increase compared to this time last year, with borrowers taking an average loan of $488,291.

In Queensland the average loan value was up just 4 per cent, with $588,388 the average price of a loan.