A rise in activity for the broker market can be expected over the coming period, according to a report released today.
Weak economic data and a fall in new home lending has not dampened the spirit of the third party distribution channel, with the majority of brokers forecasting a pick up in business growth, The Adviser’s latest sentiment survey has found.
The report found that 45.2 per cent of brokers expect their business to grow over the coming quarter – up almost 10 per cent on last quarter.
Just 16.1 per cent said they expect business to decline over the coming three months, while the rest said their volumes should remain steady.
Finance Made Easy’s Tony Bice is one broker that is optimistic about the immediate future.
Mr Bice told The Adviser that he had enjoyed a significant increase in business volumes lately – a trend that shows no signs of abating.
“Rates are not going up, but rents are and this one factor is forcing many potential home buyers to jump on the property ladder sooner rather than later,” he said.
“Time and time again my clients are coming to me and saying the amount they currently pay in rent is equal to – and in some cases less – than what they would be required to pay in mortgage repayments.”
And Mr Bice’s clients are absolutely correct, according to RP Data’s Cameron Kusher.
Mr Kusher said while property prices remain sluggish, rental rates continue to grow, with rates increasing by 2.7 per cent in the capital cities over the last 12 months.
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