Increased property listings in the lead-up to spring boost buyer confidence
Loan Market has reported a 23% increase in finance pre-approvals as buyers gain confidence from a rise in property listings ahead of the spring season.
According to the mortgage brokerage, nearly a quarter more buyers have sought pre-approvals over the past 30 days, compared to the same period last year, preparing for upcoming auctions and new listings.
Victoria saw the highest year-on-year surge in pre-approval applications within the Loan Market network, with a 40% increase. Queensland followed with a 29% rise, while New South Wales and the Australian Capital Territory combined recorded a 13% increase.
The uptick in pre-approvals coincides with a 9.7% rise in new property listings across Australia, according to data from real estate network Ray White.
Tommy Nguyen (pictured above), a Loan Market broker, attributed the increase to the growing number of property listings in capital city markets after a period of limited supply.
“There are more people looking to get into the market this spring,” Nguyen said. “The cash rate has held steady over the last seven RBA meetings, and that’s provided buyers with more certainty around what they can borrow.”
Nguyen noted that upgraders and first-home buyers were leading the surge in pre-approval enquiries.
Loan Market data revealed that the average loan size over the past 30 days was $757,920 in NSW/ACT, a 9% increase year-on-year. In Victoria, the average loan size was $626,043, also up 9% year-on-year.
Queensland saw an average of $588,388, marking a 4% rise year-on-year. Western Australia had an average loan size of $538,767, a 19% increase year-on-year, while South Australia recorded an average of $488,291, a 7% rise year-on-year.
Nguyen emphasised the importance of securing a pre-approval before the spring selling season, noting that it strengthens a buyer’s position by demonstrating financial readiness to sellers and real estate agents.
“A pre-approval is an important first-step for many people to get the attention of sellers and real estate agents,” he said. “As we see more listings and auction volumes take off from this weekend, I’d expect to see pre-approvals rise further again.”
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