Mortgage brokers located in states where property markets are expected to recover are already investing in their businesses in preparation for the coming upturn.
Following BIS Shrapnel predictions that the property market is set to see an upturn due to more favourable market conditions, the MFAA has said brokers are already positioning for the change.
“There are signs of greater activity, recruitment and investment by mortgage brokers in the recovery states," CEO Phil Naylor said.
The MFAA said the best growth for brokers will come in NSW, Western Australia, Queensland and the Northern Territory, states where BIS Shrapnel expects the strongest property recovery.
“Continuing interest rates falls have seen affordability in their capital cities improve dramatically and we support BIS Shrapnel’s view that a property recovery will gain traction from 2013, as growth in resource investment spending eventually flows through to other sectors of the economy,” Naylor said.
BIS Shrapnel forecast that purchasers will wade back into the market in greater numbers, translating to greater sales volumes and a pick-up in price growth over 2013 to 2015.
Naylor said increased confidence is likely to see more first home buyers emerge and existing owner-occupiers upgrade. He said brokers writing 42% of loans would benefit.