Ray White Frenchs Forest

Commentary byMarkMcLeod, RayWhite Chief Executive of Growth Here’s the news we have all been waiting for! The residential property market will start to recover from a two-year downturn in the second half of this year with house prices in Sydney to grow 2% by Christmas followed by up to 5% growth in 2020. According to Domain Group’s latest property price forecast, the only other capital city to see stronger price growth over the next 18months is Canberra, where prices are expected to grow 2% in the next six months, followed by another 4 to 6% across 2020. Melbourne is forecast to see more subdued house price growth, but nevertheless an increase of 1% over the second half of 2019 and another 1 to 3% in 2020. This new positive outlook for the property market is a marked change from the gloomy conditions in Sydney andMelbourne felt even just a fewmonths ago, with the banking royal commission, a slowing economy and election uncertainty weighing on prices. “Across the capitals, the three big changes of the past month that should see the market bottom out are the Reserve Bank cutting interest rates, with more to come based on recent comments from the RBA leadership; the Coalition’s win, so no changes to negative gearing, which is having an impact already; and APRA’s proposed changes [to mortgage serviceability tests] that seem likely to go ahead,” Domain economist TrentWiltshire said. Future conditions as difficult to predict as ever, we encourage you to carefully review all activity around your property in light of the current environment. MeganMacKay Principal | RayWhite Frenchs Forest What’s happening in our market?