So here’s what you need to know about the Inner West property market.
Since the May Federal election we have already seen an increased feeling of positivity through conversations with buyers and vendors. People are feeling as though they can get on with it and get business done with a bit more stability. We saw an almost immediate spike in enquiries, open home attendees and activity around our listings on the back of the unchanged government indicating buyer confidence is on the way back up.
In the 4 weeks following the election, we had 25 new listings come onto the market and 27 properties sold, that’s almost a sale every day! This shows sellers can sense the shift and are taking advantage of the improved conditions.
The Reserve Bank of Australia has followed forecasts and cut interest rates TWICE for the first time in almost three years with potential further rate cuts to follow. The cash interest rate has been reduced from 1.5% to 1.25% to 1.00% in the last 5 weeks. This means a home loan rate of say, 3.69% has potentially dropped back to 3.19%. Regardless of the amount owed, savings are likely to be noticed.
To top it all off, APRA (Australian Prudential Regulations Authority) has relaxed restrictions for banks to use a minimum 7 per cent interest rate when assessing borrowers’ ability to service loans. This will result in borrowers being able to access more capacity to borrow funds and get into a better quality home sooner. Combing all of these encouraging outlooks for the real estate sector together with bipartisan support for the significant incentives to get first home buyers back in the market should lead to higher buyer and seller confidence. All indicators are pointing towards a turn at the bottom of the cycle and the prospects haven’t looked this good since Spring 2017 – the outlook for the second half of this year is looking very positive.
Wishing you all the best for the next few months, and please feel welcome to call us for any of your Real Estate needs.