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Brokers are cautiously optimistic about the period ahead, the latest The Adviser Sentiment Survey has revealed
DESPITE AN uncertain rate environment and a flat property market, broker sentiment towards business development is largely positive, with nearly half of all brokers predicting growth in the period ahead.
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According to the latest The Adviser Sentiment Survey, 45.2 per cent of brokers said they expect their business to grow over the coming quarter – up by 9.4 per cent on the quarter prior.
In addition, more than 37 per cent of all brokers believe loan volumes will climb over the coming quarter, while just 23 per cent of brokers expect volumes to drop.
Overall, 74.6 per cent of brokers believe that property will still represent good value for buyers over the coming quarter. While this figure is down by 5.8 per cent on last quarter, it highlights broker optimism towards the market and correlates with the expected boost in loan volumes and business growth in general.
Moving on to broker sentiment towards the economy, more than 68 per cent of brokers said the RBA was doing a good job of controlling inflation – up 18.9 per cent on last quarter.
However, a majority of brokers believes the Federal Government is doing a poor job in managing the economy. 75.4 per cent of brokers said this was the case – up by 9.6 per cent on last quarter and by 28.3 per cent on the same time last year.
This negative sentiment may be attributed to Wayne Swan’s decision to ban exit fees, considering a recent The Adviser straw poll which revealed that the lion’s share of brokers believes the ban will stifle competition rather than promote it.
The drop in the number of brokers that will not recommend non-bank products in the coming quarter may already indicate this. While only 15.9 per cent of brokers will not offer non-bank products, this is up 8.5 per cent on last quarter .
On a more positive note, NCCP seems to have had little negative impact on brokers.
Despite being faced with more onerous lending obligations, just 8.9 per cent of brokers are contemplating leaving the industry within the next few months.
Over 82 per cent of brokers said they are happy with the industry at present and see no reason to depart, while the rest remained unsure about their future.
