In news this month, we begin to see the property market through a post-election lens. SQM Research chief executive Louis Christopher says there has been a confidence boost to forecasts thanks to three factors: the Coalition’s election victory, a Reserve Bank interest rate cut for June to 1.25%, and the APRA proposing a relaxation of lending restrictions.
However, My Housing Market chief economist Andrew Wilson has pointed out a wait and see approach may be prudent because “the cutting of rates is always a double-edged edged sword — it’s a positive for housing affordability but signals a growing concern over the state of the economy.”
Cameron Kusher has released an article on “median time on market” which shows buyers are firmly in the driver’s seat. CoreLogic’s data points to a longer period of negotiation before a sale, reflecting the conditions of tougher finance and fewer buyers. Sydney, Brisbane and Hobart, in particular, are showing significant increases to their time on the market.
Annually, national dwelling values were down 7.2 per cent – the largest decline since the 12 months ending February 2009. However, CoreLogic’s Tim Lawless says indicators of subtle improvements in the housing market are there in the rise in mortgage-related valuations activity and an improvement in ABS household finance data for February.
Download and read the full Market Essentials – June 2019 Report.