An expected first homebuyer drop-off in NSW has not come to pass, airing speculation that rental pressures could be encouraging first homebuyer activity.
Forecasters had tipped a massive decline in the state's first homebuyer market for January as purchases were brought forward to beat the December 31 deadline for changes to stamp duty concession. However, broker agency Loan Market has claimed first homebuyers remained active even after the cut-off.
The company said its enquiries from first homebuyers rose 15% from the beginning of 2012. A Loan Market spokesperson said the number of first time buyers in the market had grown from 43% in December to 58% in February.
Loan Market put the increased activity down to positive response to the Reserve Bank's interest rate cuts in November and December of last year. This combined with increasing rental pressure in the state had ensured stamp duty had not proven a deterrent to first time purchasers, the company said.
