Belle Property Beecroft

increased borrowing capacity and more people will take out a mortgage. Leading economists believe the most significant impact these changes will have is to boost confidence in the market. 3. INTEREST RATE CUTS On June 5th the RBA cut the cash rate to 1.25%.A second cut on July 1st to 1% sees the official rate at its lowest level on record. Historically, RBA interest rate cuts have pushed property prices up as they trigger increased buyer and investor activity. Housing experts do not believe these record low rates will ignite another price boom. Results will not be immediate, rather we should see prices steadily recover in 2020 and beyond. 1. THE FEDERAL ELECTION RESULT Regardless of your politics, the Coalition win represents a shot in the arm for the property market. On the back of Coalition policies, first home buyer and investor activity will drive market recovery.With some certainty creeping back, most economists believe we will reflect on the current period as the bottom of the market. Sellers who were delaying going to market and buyers who were unwilling to commit will now have more confidence to act decisively.The market will steadily improve (we are seeing results already), but recovery will take time as lending standards are still relatively tight. 2. RELAXING LENDING STANDARDS Australia’s banking regulator,APRA, has announced plans to relax the assessment rate for home loans, removing the 7% minimum interest rate floor. Effectively this means home buyers will have an LOOKING FORWARD THE TRIFECTA FOR MARKET RECOVERY