Ray White Point Clare

What’s happening in your market? The past couple of months have seen a quiet market as buyers hesitated in the lead up to the election. However, the election result and the removal of uncertainty around negative gearing and capital gains tax changes resulted in an immediate spike in buyer activity with the auction clearance rate in Sydney jumping to its highest level in over 12 months the weekend after the election. Further positive changes for the market followed, in the form of the reduction of the minimum interest rate at which all new loans are assessed, meaning borrowers will have easier access to money and hopefully be able to borrow slightly more. That, coupled with the announcement of a 0.25% rate cut, should help affordability and stop the downward pressure on prices that has been a symptom of buyers not being able to borrow as much as they previously could. For buyers who have been waiting for the bottom of the market, now is the time to act. With prices expected to stabilise before rising slightly by 2-3% in 2020 and holding steady at that level for the forseeable future. For sellers, stronger buyer demand should mean properties sell quicker and with less of a discount, meaning now is the best time in the past 18 months to get started with your plans and make a move. Andrew Macdonald Principal, Ray White Point Clare