A quarter of the Mortgage Brokers interviewed by the Adviser (a publication for Mortgage Brokers) have stated that they believe property investors will be a very active segment of the market when in comes to property finance during 2011.
According to The Adviser’s latest sentiment survey, 23.8 per cent of mortgage brokers believe investors will be the most active sector this quarter – up 6.5 per cent on last quarter.
While more than half of the respondents still believe borrowers with existing mortgages who are looking to refinance their loans will continue to be the most active market segment, this percentage has dropped considerably since last quarter – falling 18.8 per cent.
APM chief economist Andrew Wilson believes that investors have been holding back somewhat waiting for the market to drop – many more investors should be staging a return over the coming months.
While the numbers of investment loans fell away towards the end of last year, these are anticipated to increase as more investors decide to avail themselves of the property bargains becoming available.
“Investors are starting to get a sense that we have hit the bottom of the property market. They understand that prices will soon begin to rise and they are keen to snap up a bargain while they can.
“For the past few months, the investor traffic light has been flashing red, it is currently sitting on yellow and is likely to turn green any day now.