It’s been an interesting 12 months, to say the least, for the property market. Previously, the market was being driven by the fear of missing out (FOMO), which saw it rise to record levels, and then the fear switched in the past twelve months because of a number of other factors, which saw prices fall.
What turned things around from the market’s record run was the introduction of new fears. Fears from the elections and the risk of removing negative gearing for investors, fear of the banks and a tightening on lending, and the fear from the economic markets including US China trade wars and interest rate cuts in the US.
All in all it’s been an unprecedented 12 months, however things are definitely stating to look up which has investors walking around town with an extra spring in their step, as we move into the warmer months and the traditional spring selling season.
Record low interest rates thanks to the Reserve Bank wanting to stimulate the economy further, plus the Australian Prudential Regulation Authority has recently made life a little easier for borrowers and investors with a loosening of some of its policies means that a new fear is helping the market continue on its current course of recovery.
Given the price reduction is many areas from the past twelve months, there is a new fear that’s been building in the back of the minds of many would be property buyers and investors and it’s another FOMO fear but this time it’s the fear of missing out – on a spring bargain.
Now I am not suggesting that the marketing is set to boom back right away with record growth, but what we are seeing is what we were predicting months ago, which is a return of buyers and investors back into the market as evidenced by above 70 per cent auction rate clearance levels recently and single digit price growth over the next 12 months.
Given the property marketing is driven by economic factors and infrastructure fundamentals combined with human emotion – a return to confidence across the property market is a welcome spring arrival for all.
For those of you who are thinking now just might be a great time to get back into the market we have plenty of opportunities in and around the Greater Western Sydney area, so be sure to give the team at Plan Assist a call.