A popular northeastern suburb has experienced a surge in the number of hopeful buyers that call it home, recording a staggering increase in the number of home loan pre-approvals.
According to data from Loan Market Group, of suburbs with at least five home loans approved from July to September, compared with the same period last year, three have had at least double the number of home loan pre-approvals.
Leading the pack with a whopping 160 per cent increase is Modbury in Adelaide’s northeastern suburbs.
Glenelg wasn’t far behind, with the number of pre-approvals up 128 per cent on those approved during the same quarter last year.
Mawson Lakes, in Adelaide’s northern suburbs, was third for pre-approval growth, at exactly double, or a 100 per cent increase.
Pre-approvals are up across parts of Adelaide.
Loan pre-approvals in both Payneham South and Walkerville, which took out a joint fourth and fifth, increased by 44 per cent.
Ray White Grange agent Connor Karkafiris, who is selling 22A Vinall Road, Modbury – to be auctioned today – said in Modbury, many young buyers had bought house and land packages, had a child or two and were now looking to upgrade within the same suburb.
“Right now it’s probably the closest place to the CBD where you can still find value for money,” he said.
“Those who have bought in there have fallen in love with it and are now actively looking for larger homes in Modbury.”
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Mr Karkafiris said the recent rate cuts, and hope of another one, had given people confidence, which had prompted the surge in pre-approvals across the state.
“It increases people’s borrowing power and it gives them confidence, especially at auctions, to go that bit further,” he said.
Dropping interest rates are causing SA homebuyers to seek out their first or next property.
“It’s important people are organised so they don’t find themselves on the back foot and scrambling when they find a place they love, and that’s where pre-approval comes in – it can allow you to pounce on something the moment you see it.”
Hillcrest in Adelaide’s northeast, Parkside in the inner south and Renmark in the Riverland took out a joint sixth, seventh and eighth spot on the list, each with increases of 33 per cent.
Unley in Adelaide’s inner south ranked ninth for pre-approval increases at 29 per cent, while West Lakes, in Adelaide’s west, rounded out the top 10 with 17 per cent.
Pre-approval makes it easier for you to bid with confidence at auction.
Loan Market CEO David McQueen said the market is now very different to last spring’s.
“Buyers have been presented with a different landscape compared to last year’s spring buying season, thanks to the RBA cutting the cash rate by 75 percentage points this year,” he said.
“There’s a definite shift in sentiment and competition, with more people attending open homes and more properties selling under the hammer at auction.
“We’ve also seen First Home Buyers given a greater chance of breaking into the market with the Australian Government’s 5 per cent Deposit Scheme taking effect this month.
“Since July, Loan Market has recorded a surge in people reaching out to brokers, securing a pre-approval before starting their property hunt – they’re looking for that crucial edge in a competitive market.
– with Tim McIntyre
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