Mortgage Broker expects housing market to stagnate

Home loans specialist Mortgage Choice has claimed that the Australian property market is unlikely to experience growth in the coming year.

According to the mortgage broker, the market will remain flat for the foreseeable future thanks to a growing conservative consumer sentiment and very little growth prospects in the wider economy, reports the Herald Sun.

The firm noted that the most active avenue of the property sector at present is home loan refinancing, but even in this area Aussies have remained extremely cautious.

Mortgage Choice's predictions come as the firm's net profit plummeted by 33 per cent year-on-year.

Recent figures from the Australian Bureau of Statistics have shown that mortgage refinancing is becoming hugely popular as Aussies struggle to make ends meet.

This could explain why Mortgage Choice is shifting its focus to the more profitable area of financial planning, which for hard-up homeowners often boils down to refinancing to a cheaper mortgage deal.

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