THE latest ABS data shows the value of new loan commitments for housing reached record highs in December 2020 and local mortgage brokers see no sign of the spending slowing down.
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The total value of new loan commitments for housing rose 8.6 per cent to $26 billion in December 2020, a massive increase of 31.2 per cent from the previous year.
In NSW, new loans for owner-occupier housing reached 6.4 billion, while investor housing loans increased to $2.6 billion.
Money Quest Finance Specialist, Ian Behan, said that government incentives and record low interest rates were driving the real estate industry.
"Your home loan rates should definitely be starting with the number two, anyone with three or higher should really look at refinancing," he said.
"We also have the unusual case where fixed rates are lower than variable ones, so it's certainly a good time to be locking in a fixed rate."
ABS data shows an increasing preference towards fixed over variable, with the record low rates tempting people to lock in loans for three to five years.
Ian said it was a trend that was occurring across Bathurst.
"There certainly seems to be a lot more customers choosing to go for fixed loans rather than variable, especially over the past six to seven months," he said.
"People are also opting to go for more basic loans without the frills attached, because it allows them to set a much simpler and clearer budget."
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Laurie Parkes, Leading Mortgage Broker for Front Runner Finance Solutions, said that Bathurst was currently experiencing a strong seller's market.
"The low rates and willingness of people to spend at the moment is driving up prices which people are still prepared to pay," he said.
"And despite the perceived view that people are flooding into regional areas from the city, it really is local people driving the purchases."
Laurie said that they had almost doubled the amount of loans they normally conduct over the past six months, with low rates convincing people to invest in the property market.
"The majority are new purchases or construction, however we are starting to see an increase in people refinancing," he said.
"Anyone with an existing loan or looking to invest should see a mortgage broker as we have access to a range of lenders, can discuss your situation and get the best deal possible that suits your individual needs."
The Reserve Bank of Australia is widely tipped to leave interest rates at their current levels in a bid to keep the economy moving along almost 12 months after the outbreak of COVID-19.