Mortgage brokers are reporting they're still seeing first-home buyers but fewer than previously while investor interest has dropped sharply.
Economist Tony Alexander's latest survey, which had 59 responses, found a net 19% are reporting more first-home buyers, but that's down from 33% in January, which Alexander views as a post-Christmas bounce back.
But those seeing more investors is now slightly negative, down from more than 20% in January.
That follows most banks adopting new loan-to-valuation ratio restrictions ahead of their formal implementation date — the Reserve Bank will require investors to have at least a 30% deposit from March 1 and at least a 40% deposit from May 1.
But it could also be a reaction to soaring house prices — the Real Estate Institute's house price index rose 19.2% in January from a year ago.
A net 19% of brokers are also reporting banks are becoming more willing to lend, down from 27% in December.
"Though this may be a decrease, it still means that willingness to lend is improving and this situation stands in stark contrast to the early days post-lockdown when advisers reported that willingness to lend was worsening," Alexander said.
