PHOTO: Ray White Group
MAY 2019 will likely go down in history as a pivotal moment in our immediate history.
The Coalition won the Federal Election, APRA signalled to lenders to relax the stress test on a borrower’s capacity and then we saw the first cut to interest rates in almost three years.
The official cash rate was dropped to 1.25 per cent by the Reserve Bank of Australia, which essentially provided a shot in the arm to the property market.
We’d already seen a noticeable change in the atmosphere in the last few weeks with increased inspection numbers and people more willing to raise their hand at auctions again.
Overall May’s count suggest Ray White listings remain low for most capital cities, with the month still largely a buyers’ market however we’re also now starting to see early signs of more listing activity.
The federal decisions appears to have given more confidence to buyers to enter the market knowing that key downside risks have been mitigated.
Perhaps it’ll now be perceived that the risk of not acting in today’s market outweighs the risk of getting into or upgrading in this market.
There seems to be a real confidence with our principals over the last few weeks post the election, but it will be interesting to see if this can be sustained.
With many offices continuing to identify lack of stock as their biggest issue, we are hopeful the resolution of the election uncertainty will give vendors more confidence to come back to market.
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