Mortgage brokers should be contacting their existing clients and chasing new leads to drum up business as home buying activity begins to drop off, according to a mortgage aggregation group.
eChoice noted that auction clearance rates across the country have been less than impressive in what should have been the two most energetic weekends of the year.
“Sydney, traditionally Australia’s hottest property marketplace, has recorded its tenth week in a row of auction clearance rates under 80 percent, according to a recent Corelogic report,” Paul Liccione, eChoice general manager of sales and distribution, said.
“Spring activity usually sustains brokers through that quieter Christmas/ New Year period, however, this year as buyer sentiment appears weaker, prices in some markets [will] plateau and the effects of the investor-lending squeeze [will] begin to influence buyer and seller behaviour – spring may very well become the new winter,” Mr Liccione said.
Given that the regular pattern of the property market this year has changed, brokers need to rethink their approach to new business, he said.
“Now could turn out to be the perfect time of the year for brokers to revisit their database and actively contact their dormant enquiry lists.”
Mr Liccione said that with so much air time being given to changes in lending requirements, speculation about off-the-plan purchases and opinion about the direction of the property prices, there is plenty to discuss with existing and potential clients – and of course new business and potential referral opportunities.
“Our state-of-the-art Concierge program has unearthed some incredible opportunities for those brokers now utilising the facility. This targeted client contact program is already delivering quality new business to the participants from their own databases,” he said.
“Our brokers are telling us that the feedback from their customers is extremely positive and the program is on average generating new business at the rate of one new loan for every 10 contacts.”
[Related: eChoice bullish despite $20m loss]