POSITIVE NEWS FOR THE HOUSING MARKET!

There was a great article by Robert Harley in the Australian Financial Review on 6^th June that put a spotlight on the housing market after the recent election result. It confirmed my thoughts on where the housing market is headed.

Over the past month there have been a number of levers that have been pulled which positively impact the housing market. These include:

• With the Liberal Party winning the election the threat to negative gearing and capital gains tax has been removed.
• Mortgage rates have been cut and are the lowest in history
• The government will help 10,000 first home buyers bridge the deposit gap
• APRA is likely to reduce the mortgage rate serviceability buffer making it easier to borrow than it has been over the past 6-12 months.

Stockland chief executive Mark Steinert was reported as saying “It’s a pretty powerful cocktail for an improving market…..you could make the case that everything points to a significant rebound, I would not go that far, but we have definitely bottomed.”

We are expecting an increase in homes coming onto the market and somewhere from the middle of next year we are confident house prices will start to rise moderately.

An auction Ray White Croydon sold on Saturday had a much different vibe to auctions that we’ve had over the past 8 or so months. It was refreshing to see a number of new buyers out looking and being really positive about the market. They were much more open to interacting with us, overall a more positive vibe.

It’s a well-known fact that consumer confidence in the economy and the housing market go hand in hand. It will be great to have some greater predictability around the market – it’s been tough at times for us real estate agents who have been the bearer of difficult news – we look forward to being able to have a more predictable market again and be able to deliver positive news to our clients.

We are also excited at the prospect of having a lot more housing stock coming onto the market so that we have more options to show buyers. In the month of May there were just 57 homes come onto the market compared to 102 in May of 2018.

If you have been holding off making a move as you were unsure of the market now is a great time to get an experienced agent in to give you an update. We’d love to help you – please feel free to contact me or my team on 9725 7444.