Now that the election is over and the uncertainty of which government will reign has passed, the subsequent speculation of what that means for the Canberra property market has just begun.
In the short term, I don’t expect to see much change in the property market. Canberra ended its property price growth period in late September 2018. The market had been slowly coming off the boil organically for a couple months prior. The banking royal commission and the tightening of lending practices accelerated the correction.
Moving forward, I believe the market will hold firm in its current state for some time. If there is to be an interest rate drop, I would not expect this to be enough to stimulate market growth. I would see a drop in interest rates to be a preventative measure to stave off a larger negative economic impact.
Since the peak of the market in September 2018, the number of properties listed for sale has reduced, this is a knee jerk reaction from sellers immediately after a property market has peaked.
As we move toward spring and sellers become comfortable with the state of the market, stock numbers will increase. For those buying and selling in the same market, the reduction in sale prices will generally be balanced by the savings made in a property purchase. In Sydney, Melbourne or Perth where the market decline has been more substantial, the gap has likely reduced in comparison to where it stood a couple of years ago and now may be a great time to make a move.
If you have any suggestions for any data you would like added to this review, please contact me anytime.