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As you know I like to keep you updated on the local market and since my last email update there has been a lot of changes both locally and across New South Wales and Australia.
Federal Election
No matter which way you voted, the Liberal Government was predicted to have a positive impact on the property market, although my opinion is that the real impact of a new Government is more in the lead up than in actuality.
It was extremely evident that this election became a battle for votes from both sides of the property market and it was, in this case, solidified in the weeks since that the outcome was a positive result for property owners.
Interest Rates
At the time of writing this there is a 100% chance of an RBA rate cut this month based on the ASX 30 day interbank cash rate futures I would predict that if you read this email after today (Monday 3rd) you will have already seen the news of the cut.
While this rate cut may not be passed on straight away, this will provide more positive sentiment to buyers who have been sitting on the sidelines waiting for a sign that the market will no longer fall.
Also, APRA recommending a reduction in the criteria around serviceability from 7% down to a likely 6% will mean that buyers might have access to more money – people sit on two sides of the fence with whether this is a good idea but there is always a healthy amount of risk associated with buying property.
First Home buyers
There is a policy release from the Morrison Government that has provided a plan to secure deposits for first-home-buyers providing they can provide at least 5% the Government will guarantee the remaining 5-15%. This will be secured and will be liable to be paid back if the property sells. There is still a bit of confusion about this and obviously criteria for access to the grant so until it becomes a stamped policy and we get more information, I will wait to comment further.
However, a boost to first home buyers is always funneled up as people upgrade each step of the ladder gets the benefit.
Auction clearance rates
For the most part, Auction clearance rates across the Country have improved since the weeks leading up to the Election and most importantly NSW is sitting close to 70% which is almost 20% higher than this time last year.
Predictions and findings
Domain has released figures that open home numbers are up 10% nationally through their reporting outlets. Anecdotally, we are seeing an increase with our buyer numbers (between 20 and 40 through first inspections) and most of these buyers are turning up with ‘pre-approval’, which is a dramatic change from the past 12-18 months.
There were also talks that incoming appraisal requests through Real Estate agencies were up more than 11% in fact I think this is far greater in our area.
Most Banks and Brokers are spruiking an increase in loan applications and subsequent approvals.
I believe that house prices will cease from falling and while we may not get an instant rise in prices, the confidence from buyers, or nerves rather, will ensure that property sells at or before Auction leaving the 45+ days on market behind us.
If you would like a report on your suburb or another suburb I can have these back to you very quickly, please reply with your desired suburb.
Suburb Medians
| West Pymble: $1,620,000 | Pymble: $2,330,000 | Gordon: $2,330,000 |
| Turramurra: $1,920,000 | South Turramurra: $1,520,000 | North Turramurra: $1,630,000 |
| Wahroonga: $1,820,000 | North Wahroonga: $1,720,000 | Warrawee: $3,200,000 |
| St Ives: $1,950,000 | St Ives Chase: $1,800,000 | Killara: $2,520,000 |
| Hornsby: $1,130,000 | Hornsby Heights: $1,050,000 | Normanhurst: $1,180,000 |
| Berowra: $1,111,000 | Thornleigh: $1,160,000 | Pennant Hills: $1,350,000 |
Thank you.
Thomas Merriman
Thomas Merriman 