We live in a new world. Game of Thrones is over and the election win has left us feeling confident yet wondering what’s next. Everyone was so convinced Labor was going to win, the real estate industry saw it as the Night King’s army marching towards them, I know, such drama queens. So what effect has the election win had so far?
The week straight after, RP Data reported an auction clearance rate of 71.85% with 476 auctions across Sydney. The Lower North Shore was a very confident 87% clearance rate and a solid 68% last week. Does this mean we are still in party mode and the horrible hangover is yet to arrive? Cynics may say so, but here is why we see this as a turning point for the housing market.
APRA are finally looking to relax borrowing restrictions. Currently lenders have to assess whether a borrower can afford their repayments using a minimum interest rate of at least 7 per cent. If this is reduced, people will be able to borrow more driving further demand.
Buyers finally have a level playing field. Compared to a year ago, seller expectations are more in line in with buyer expectations. On the upside for sellers, with property campaigns priced more competitively this has in turn invigorated buyer demand with strong results.
The cherry on top. The RBA slashed the official cash rate on Tuesday to a historic low of 1.25% and further cuts are expected by the end of the year. This will stimulate the economy which in turn will bring consumer confidence to property.
We can certainly feel the positive vibes at our open inspections and our office has a 2019 clearance rate of 94.4%. If you would like to discuss selling in this market, give me a call, I even have a dire wolf.
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