The end of another financial year is upon us and has been heralded in by what is now the lowest cash rate in Australian history at 1%.
For some this is the mark of an ailing economy that requires pump-priming, while for others it will simply mean a more affordable cost of living through lower interest rates.
Rate changes in the recent decade have lost the impact that they used to have though and I feel that the RBA will find many people pocketing the new savings rather than rushing out to buy up big.
The 5 year growth run and subsequent end is not to be taken lightly and the market simply won’t turn around on a dime. It will take time for confidence to rebuild and I don’t expect to see any real gains until the new year (see last months comments here: http://bit.ly/2J4TaqJ).
Despite this, Australia’s housing affordability is the best it’s been since 2016 according to a recently released report from ANZ and Core Logic, helped by recent falls in property values in the Sydney and Melbourne markets. Sydney property prices have recorded the most significant decrease, dropping by 14.5% since their 2017 peaks.
The number of property listings on the market are currently lower than at any time in the last 12 years, with the slowdown in Sydney and Melbourne again being the most significant. Sellers are reluctant to list their properties during a market downturn. There has also been a drop in the number of listings in the Brisbane, Canberra and Perth markets.
However, there is speculation that there could be increased interest from Hong Kong buyers looking to buy top-end Australian residential property due to the current tensions between Hong Kong and China.
If you want to talk about how you can take advantage of buying investment-grade property at the bottom of the cycle, schedule in a time for a free strategy call here: 15 min Strategy Call.
As usual, I have put our 2-page Market Essentials report in the link here or you can click on the image below…
