The traditional end of financial year slowdown was not witnessed this year, perhaps, due to the overriding cooler conditions.
We are in for a few more months of uncertainty however we may see some positivity in Spring. This has definitely been reflected in the media already.
First Home Buyers will continue to be the key source of housing demand due to improved affordability, low mortgage rates and incentives. Investors are only 25% of lending commitments.
In the established market, auction clearance rates moved further into the mid 70 per cent range (of note, an average of 57 per cent pre-Federal election and 65 per cent post-election): approaching the long run trend.
Established housing prices falls will temper and legitimate sellers will continue to offer larger price reductions.
Extra stimulus will need to be considered, interest rates are predicted to fall again in November, and in March 2020, with rates falling to 0.50%.
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21 August, 2019