Property Market Picking Back Up after Federal Elections

The lengthy Australian federal election 2019 is over!

With the Coalition’s win and return to power, the property market is now picking up where it left off.

Not only Labor’s changes to property tax have been off the table after the Coalition’s re-election last month, the new government’s ‘First Home Loan Deposit Scheme’ proposal for first home buyers (which will offer them loan guarantees to allow them to buy a property with a minimum deposit of only 5% instead of 20%) as well as the relaxation of mortgage serviceability requirements by the Australian Prudential Regulatory Authority, have also created positive impacts on the market.

Auction clearance rates are slowly improving across cities, particularly in Melbourne and Sydney which property markets have recently maintained more than 60 per cent auction clearance results, despite the increasing number of listings.

Aside from that, there was also an uptick 11 per cent increase nationally in the number of people attending open home inspections since May 20, 2019.

Property owners have also shown more interest in selling in the past two weeks, with a 10 per cent increase in appraisals all over Australia.

These outstanding news are just signs of renewed, boosted confidence in the property market. As per Domain economist Trent Wiltshire, “It’s a good indicator of buyer interest. People, even if they’re just thinking of buying, they’re starting to attend home inspections in greater numbers.”

In addition, an ease in getting finance and lending conditions is also bringing more buyers and investors back in the market. The banking regulator Tuesday proposed easing lending rules that will provide people with greater purchasing power, and there are also further indications of potential interest rate cuts by the Reserve Bank of Australia (RBA) and other banks in the cities that can boost property prices by about 8 per cent in the following two years.

Lower mortgage rates, an ease in lending restrictions and banks eagerness for new business have simply contributed to the current excitement around the market.

—–

With buyers and sellers returning to the market, Reval Estate Agents are always here to provide you with informative feedback about the local market conditions and offer you helpful advice during the marketing campaign. You may reach us at 1300 427 247 or info@reval.com.au.