Berry Blog

Much to everyone’s surprise the Coalition had a resounding victory in last weeks election.  After the tumultuous months leading up to the election where we watched the property market decline significantly due to investors leaving the market, bank lending tightening up due to the Banking Royal Commission and then the uncertainty around negative gearing and capital gains tax changes as we headed into a federal election. 

The market hates uncertainty!  and the evidence of this is clear with the property market going into a downward spiral over recent months. 

The win by the Liberal Party, the loosening of lending restrictions and the timing of any interest rate cuts – the first of which seems likely next month,  should deliver a boost to our languishing markets and see confidence return as the market stabilises.

Other good signs that we are heading to market stability:

• While some property prices are still falling, the rate of decline is easing
• Auction clearance rates are improving, albeit on much lower volumes that a year ago.
• Buyers are back in the market. Particularly first home buyers encouraged by incentive packages, but also established home buyers and investors.

There’s no denying that we still have a way to go back to a healthy property market, but with renewed confidence emerging we would hope to see a turnaround evident by the end of the year.