Post-Election Confidence and a “Spring” in our step has seen a return of buyers to the marketplace.
Lower interest rates and in increase in positive market sentiment is having an impact on Sydney and Melbourne with price increases finally starting to occur. This is great news for Brisbane too as history shows we experience a real estate price rise as a flow on effect from our Southern neighbours.
Spring 2019 is seeing more buyer activity with the auction clearance rates reaching all time highs for this calendar year. Buyers have more cash to spend and finding it cheaper and easier to get finance. The issue however is still an undersupply of particular properties in the market place. Here, at Enclave we have had a lot of enquiry for larger two-bedroom apartments in Unison up to $1 million. They are very tightly held by owner – occupiers and our last one sold six months ago for $990,000 – a record price for this type still to this day. We are actively searching for the corner 136 sqm two beds but they are hard to come by.
Pier at Newstead is another example of undersupply , with a $2.6 million plus riverfront apartment snapped up at the first open for inspection at just $20,000 under the asking price. Buyers came out for that one is their swarms and the first inspection was truly buzzing!
Real estate.com.au has just reported a 25 % increase on searches in the last 12 months. The biggest jumps occurred after three significant events – the Federal election and the two most recent interest rate cuts.
Income tax cuts give people more disposable income – Tax cuts came into effect at the start of this financial year giving most Australians more money in their pockets.
Obtaining a loan is getting easier -With the two interest rates cuts just mentioned its so much easier to get a home loan this year than last year. People can borrow more and there is even more increasing confidence with analysts forecasting another two interest rate cuts in the next 12 months.
Obtaining a home loan is cheaper – not only is it easier to get a loan but with the rate cuts people can borrow more money allowing them to buy more expensive properties across the board.
Overall it must be said that confidence is coming back, and this is evident in the sale rates across the Eastern seaboard of Australia. Spring is a beautiful time of year here in Queensland especially with our Iconic Jacaranda trees in full bloom and what a perfect time to settle into your new home just before Christmas!!
Bye for now,