2019 was a turbulent year with the federal election, Royal Banking Commission, improved credit access and record low interest rates. Following a subdued winter, we have seen a clear change in the market over the spring period. Buyer activity is strong in response to the low interest rate environment and with a continuing short supply of properties for sale the auction clearance rate has picked up and the time on market has reduced.
We are expecting an active market through the summer with the ongoing low interest rate environment supporting property prices. We continue to see the shortage of supply driving strong property prices through buyer competition. This should flow onto an increase in the number of homes listed for sale in 2020 as vendors gain confidence in the market in response to increasing prices.
According to Corelogic, property ownership remains the Great Australian Dream, with 86 per cent of millennials surveyed stating it’s important to be on the property ladder. With millennials overtaking baby boomers, this only bodes well for the market.