PHOTO: The outlook for the Australian property market is ominous in the short-term.
- The coronavirus has begun to soften auction clearance rates, as less people turn out to auctions in capital cities.
- As the outbreak continues, and the economy weakens, property sales are expected to suffer in the short-term.
- Another rate cut expected to be announced on Thursday could offset pressure on mortgages, and boost a potential recovery, as fears of a recession loom.
While the coronavirus takes global stock markets for a wild ride, it’s left Australia’s sacred cow, its beloved property market, well enough alone.
Take auction clearance rates, one of the market’s leading indicators, for example. Over the weekend they showed the first signs of softening, although haven’t fallen significantly yet.
“The impact so far has been pretty muted. Clearance rates have been down a touch but they’ll still be pretty solid numbers when they’re finalised later this week, probably ending up around 70% in Sydney and 65% in Melbourne,” Domain economist Trent Wiltshire told Business Insider Australia.
“There are fewer people at inspections but it doesn’t seem like the news has flowed through to the property market although there is some risk to the short-term outlook.”
READ MORE VIA BUSINESS INSIDER