In recent months, news of a looming election (likely on July 2) have acted to quell some buying and selling decisions, particularly given the potential for significant changes to the treatment of property taxes for investors. Housing markets had eased with prices growth going backwards, however new data confirms that investors are re-entering the market ahead of possible changes to negative gearing and lower interest rates.
Auction clearance rates are back up above 80% having fallen below 60% in December 2015. The recent demand comes after the RBA’s decision to cut official interest rates and the banks decision to pass on the full rate cut last week. After being on hold for 11 months, official interest’s rates were cut in May to a new record low of 1.75 per cent, their lowest since July 1968. Property prices in Sydney increased by 4.5% over the first four months of 2016 (Corelogic). Rental values remain flat over the same period. Housing prices are broadly rising but not at the same pace than we saw 6 months ago.
This latest cut is likely to revive prices growth, particularly with lower property listings firing up the inner city Sydney market. This again presents an excellent opportunity to take advantage of the limited stock available and achieve a premium price for your property. Should you be keen to discover the value of your property for tax or sale purposes, please call Michael on 0411 641 662 or our sales team on 9699 9179.