2018–19 to be a buyer’s market: Aussie CEO

Aussie chief executive officer James Symond has said that, while sluggish wages growth and ever-tightening lending conditions are still cause for concern, the easing or reversal of price growth in some markets will be a welcome change.

The brokerage CEO made the comments after citing several reports that have showed an easing housing market across the nation.

Highlighting the Housing Industry Association’s recent Housing Affordability Index, Mr Symond noted that “property prices have improved affordability in five of Australia’s capital cities in the June 2018 quarter, with Hobart, Adelaide and Melbourne the exceptions”.

“Perth continues to be Australia’s most affordable capital city and represents excellent value for first home buyers and investors,” the CEO said.

“I expect we will see a return to growth in that market very soon as buyers capitalise on its market conditions.” 

Mr Symond also pointed to Aussie’s recent 25 Years of Housing Trends report, which showed that loan serviceability levels have improved over the last 25 years.

The report revealed that the proportion of annual household income required to service a mortgage (based on a 20 per cent deposit) is currently tracking at 36 per cent, up from 27 per cent in 2001, but down from its peak of 51 per cent of annual income in June 2008.

Given the emerging theme of an easing housing market, the head of Aussie Home Loans suggested that we would be entering a buyer’s market in this financial year, adding that brokers were well placed to service the needs of these buyers.

Mr Symond explained: “A new report released this week by Deloitte Access Economics shows that mortgage brokers make mortgage markets work better, providing information and improving choice and competition for borrowers.

“It’s for these reasons and more that there’s never been a better time for a borrower to use a mortgage broker.

“Brokers intimately know the various lending criteria and policies of different lenders, and so can help borrowers secure the right loan faster and easier than going it alone.”

[Related: New home sales up for the first time in 2018]