Not quite in recovery yet
The big news in property values is, as The ABC reports on the last week of the month, a minor increase in property values in Sydney (0.1%), Melbourne (0.2%) and Hobart (0.2%) in June, which is the first increase in value in 2 years. The rest of the country continues its largely slowing decline with no major centres recording a decline larger than 1%. Things aren’t improving overall per se, but the rate they are deteriorating continues to slow.
Tim Lawless, in the Core Logic monthly housing update, noted the previous week that there are a number of recent changes that ‘bode well’ for the housing market. These include a perception of stability in the Federal government, an announcement from APRA that loan serviceability is likely to improve by late June, and the RBA interest rate cut of June 3.
Some of the specific outcomes from the Federal election include:
- Taxation reform including Negative Gearing changes no longer possible
- Certainty around Federal budgeting
- Mortgage broker commissions are no longer in doubt
- A first home buyer stimulus package is scheduled from Jan 2020
- Overall confidence in the market has improved