MARKET COMMENT AS AT 24th June 2019
Whilst sales levels nationwide have been a little flat over the last few months, the market has remained steady in June, July and early August in and around the Capital City. Historically the depth of winter has had an adverse impact on the market with both buyers and sellers putting their plans on hold during this period. This year has been no exception and market activity has been in line with Tommy’s expectations. Demand remains strong though for good houses in popular locations. With spring just around the corner, we can confidently expect a further increase in the number of properties coming to the market and a corresponding increase in confirmed sales. Price levels have generally been maintained in the City and suburbs.
Looking ahead, market commentators are expecting mortgage interest rates to stay constant or perhaps even drop further depending on Reserve Bank announcements regarding the Official Cash Rate in early August and September. A sustained period of low mortgage interest rates will give confidence to first home buyers and to those considering upgrading to a more expensive home. Property Investors are also taking a more active interest in residential real estate again now that the threat of a capital gains tax has been put to rest and other legislative changes effecting rental properties have been settled.
These factors along with a possible easing of the Loan to Value Ratios should contribute to a continuation of our stable market over the coming months; buyers however are taking time in making buying decisions and are tending more often to include conditions when offering. The conditions as a general rule cover the usual items of builder’s and other specialist reports, title searches, LIM reports and securing acceptable finance arrangements and insurance cover for their properties.
