18 July 2010

August election could set property market for booming spring: experts

The Federal Government's decision to pull the trigger on an August election is set to provide the Australian property market with a significant shot in the arm as it heads into the traditional spring selling season.

Raine & Horne CEO Angus Raine said Australians were normally wary of buying or selling a home in the lead up to a federal election.

“Generally we tend to wait until the election is decided just in case there are any unforseen surprises,” Mr Raine said.

“Therefore an August election is perfectly timed from our point of view, as winter is typically a quieter time for property sales.

“An early poll will enable vendors to list in August or earlier, and won’t affect buying aspirations through the traditional spring selling season.

Kent Lardner, chief operating officer of PriceFinder, agreed that based on past experience, a winter election would have an effect on the property market.

“Sales numbers tend to decline during a federal election,” Mr Lardner said.

“Most buyers and sellers tend to hold over until after the election as it’s traditionally been a bad time to sell or buy property.

“This coupled with the threat of another rate rise and the aftermath of the first home buyers grant will see the property market on hold.”

Raine & Horne Dubbo principal Grahame Allan agreed and said the market could look forward to a noticeable spike come springtime.

"We are expecting a great few months in the lead up to Christmas,” Mr Allan said.

“An early election might not be great news for home owners looking to sell in the next couple of months, although it does give first home buyers valuable time to build a bigger deposit."

Raine & Horne is an iconic Australian property firm, with more than 400 offices worldwide. Also an established Superbrand along with the likes of Qantas, Vegemite, Woolworths and Myer, the company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Financial Services and Raine & Horne Rural.

For further media information contact:

Angus Raine, CEO Raine & Horne on 02 9258 5422 or 0409 920 697

Rebecca Williams, National Systems & Support Coordinator, Raine & Horne on (02) 9258 5410