Believe it or not, this is actually an exciting time in the property market. There is change in the air and great opportunity is beginning to present itself.
The traditionally busy Spring season is just a couple of months away and now is the time to start planning your next move.
Selling in Winter provides a supply/demand advantage to vendors because new stock is always lower. Spring should bring many more listings to the market, providing greater choice for buyers who have already sold and are ready to make their next move.
Here are the factors changing market momentum…
– APRA-led easing of assessment criteria for new loans, taking effect probably July/August.
– Official interest rate cuts – one down, one to go probably this month or next.
– Independent home loan rate cuts by the banks, especially on fixed loans, to attract new market share, with mortgage rates now tracking at their lowest levels since the 1960s.
– The election result/no changes to property investment tax offsets.
– First home buyer deposit scheme – no material change to market, just extra confidence (SQM Research predicts the initial $500M investment will translate to 6,000 transactions).
I think buying conditions on the Gold Coast are about as good as they’re going to get before the market turns to normal growth you would expect under normal market conditions.
Although, don’t expect a dramatic change. Credit curbs as a result of the Royal Commission will continue and household debt remains high, plus we have some economic headwinds both in Australia and internationally that could impact confidence.
I think confidence levels are definitely changing, things look positive for the property market.