Whether you’re thinking of buying or selling property, or you simply have an interest in understanding what’s going on in the market, this report is for you. While stories of falling house prices have dominated headlines, PWS Finance Advisory believes we are starting to see green shoots in the housing market. We expect this trend will gather momentum, spurred on by recent regulatory and monetary policy shifts. We expect to see a further slowing in the rate of price declines over the next few months, at which point we believe prices will stabilise and then start rising modestly.
The election result has removed uncertainty for home buyers and sellers, with a Coalition Government maintaining the status quo on property-related tax policies. In the immediate aftermath of the election, the banking regulator lowered its serviceability restrictions for lenders and the RBA cut the cash rate to a historic low of 1.25% at its June meeting. A further 0.25% rate cut is expected in coming months. These factors combined should stimulate demand for housing, prompting a rise in national dwelling prices of 5% or more by the end of 2020.
In the following report linked here, Macquarie uncover the insights behind the figures.