Rise in property prices coinciding with more confident home buyers and investors: Mark Bouris

The 1% rise in capital city house prices in June as recorded by RP Data-Rismark has coincided with an improvement in confidence among home buyers and investors, according to Yellow Brick Road executive chairman Mark Bouris.

Bouris says the positive housing data “signals the light at the end of the tunnel for home owners and property investors”.

Bouris says Yellow Brick Road has seen an increase in consumer enquiry specifically around refinancing and financial planning, “as people have begun to wake up and take their financial matters into their own hands”.

Over June mortgage broker AFG recorded an increase in refinancing to nearly two out of every five mortgages arranged by its loan writers as well as a drop in fixed-rate mortgage demand as borrowers anticipate further rate cuts.

“The 55-basis-point reduction in the average discounted home loan rate over May and June means that refinancing is becoming increasingly competitive, with lenders vying for business and consumers becoming more active in finding the best possible mortgage rate,” says Bouris.

“Average monthly home loan repayments can differ by over $100 per month between the major four banks and non-bank lenders such as Yellow Brick Road, which shows how much savings there are to be had by shopping around,” he says.

Bouris claims people now have a better understanding of market volatility and have turned to more conservative investment opportunities that will offer a steady return without as much risk.

Bouris says there has been “a massive uptake of Yellow Brick Road savings products among first-time home buyers and people looking to invest in high-yielding, conservative assets.

“Consumers know that there’s a lot of volatility in the share market and many simply don’t want to get in over their heads. On a positive front, the current economic environment has taught people to be more cautious, which will hopefully assist in preventing mortgage arrears and business bankruptcies in the long term,” he says.