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Market may favour first time buyers

Sydney market may appeal to first time buyers.

First time buyers may be able to take advantage of the decline in investor activity in Sydney.

The Sydney Morning Herald explained that a fall in rental yields may open up the city to people hoping to step on to the property ladder.

''All the pointers are there showing that the Sydney investor market has overshot its fundamentals,'' explained Andrew Wilson, senior economist at Australian Property Monitors (APM).

He added that poor rental yields are a result of climbing house prices but this could mean first time buyers will move in as the investors look for more profitable markets.

The latest Veda Consumer Credit Demand Index shows mortgage enquiries have increased by 15.3 per cent from 2012’s fourth quarter compared to the last three months of 2013.

December 2013’s mortgage enquiries were 9.7 per cent higher than in September and 7.9 per cent up on October’s levels - showing demand for housing is still strong in Australia, especially as interest rates remain low.

Posted by Steve Douglas.

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