In news this month, issues at the heart of the next Federal election, like potential changes to policies around negative gearing and capital gains tax are proving to be a growing concern for Australians. Changing credit policies focused on reducing the debt-to-income ratio are affecting the market, but Tim Lawless of CoreLogic indicates it likely that lenders will remain competitive for high-quality borrowers.
Despite recent market downturns, 2018 PIPA Property Investor Sentiment Survey shows “more than 77 per cent of respondents think now is a good time to invest in property.” Further, 52 per cent are looking to purchase within 12 months.
However, settled sales are down almost 10% nationally, year on year, according to CoreLogic. Although, Tim Lawless points out that it’s the premium housing market that has seen the most considerable falls, with a 5.4 per cent fall in the upper quartile of the market, while more affordable areas are proving more robust.
In general, home sales are taking longer and fewer properties are selling at auction. This leaves more stock on the market, positioning buyers more favourably. In fact, the median vendor discount has risen from 5.9% a year ago, to 6.5% today, according to CoreLogic.
Download and read the full Market Essentials – October 2018 Report.