What a week! This week’s news edition will be broken in two sections. Pre-election and post-election.
Here is what happened before Saturday:
Earlier in the month, several banks dropped their interest rates, despite the RBA not shifting its cash rate.
ANZ follows CBA, Westpac and NAB with home loan rate cuts
Some prestigious suburbs of Sydney recorded significantly lower prices:
‘Probably the cheapest you can find’: Sydney’s most affordable properties in prestigious suburbs
And not that long ago, the property downturn looked like a deep hole without a bottom, despite most people not believing it may cause a crash.
Australia’s property crunch bad but far from a disaster – so far
In light of Liberal’s ‘miracle win’ on Saturday, it seems there has been a miracle on property opinion too. We were hard pressed to find any sign of the negativity that has permeated the media for the last 18 months.
According to Property Update: There’s good times ahead for Aussie property, here’s why (from the article):
“And this means our housing markets are likely to pick up by the end of the year.
The stability of government and the fact that there are no changes to negative gearing or Capital Gains Tax will encourage investors.
The market hates uncertainty, and the Coalition win should return confidence to our subdued property.”
There was a bunch of other positive pieces too:
Melbourne and Sydney property markets closer to the bottom after shock Coalition victory
What the federal election result means for the property market
Melbourne house prices to finally find a floor, Treasury chief says
Winter is coming: Will Sydney’s property market continue to cool?
We would have to agree with what Cameron Kusher of Core Logic was quoted as saying in the news.com.au article above:
“Maybe the rate of decline will slow a little bit, but I don’t see this yet as a turning point for the market that bottoming out is necessarily imminent.”
Business Insider pointed out that not all has been 100% positive: Clearance rates softened and home prices continued to fall before the federal election
And what next?
Lower interest rates? RBA Likely To Slash Interest Rates — NAB
Lower unemployment leading to more economic confidence? History suggests a lower jobless rate under Coalition
Stay tuned for the updates! Have a great week.
