A good sign.
Tuesday 10 May 2016
There is so much going on across so many different fronts right now that all have the potential to impact, or at the very least influence, the property market. And yet the Sydney market continues to move along well, almost oblivious to the distractions. It is a good sign.
Naturally the Federal election will dominate the headlines for the next 50 plus days. Even if the reality is most of the electorate will quickly tire of the politics it will shine the spotlight on our national finances and future policy direction in a way that could either inspire or unsettle the confidence of vendors and buyers.
But so far it hasn’t. Over the past few weeks of the ‘unofficial’ election campaign the property market hasn’t really changed pace. Vendors remain reticent to list and the subsequent lack of stock continues to fuel the strong demand.
Then there is the renewed focus on the direction of interest rates with the decision to cut the rate last week coming as a surprise to many and talk now turning to the prospect of deflation. Again the potential is there to both fuel and dampen residential property activity.
But so far it hasn’t. Surprisingly it isn’t bringing new vendors into the market.
Of course there was the Budget which proposed changes to superannuation and tax cuts and there was the decision on negative gearing. All relatively big ticket items that could influence spending patterns and economic confidence.
Again, so far no dramatic impact on the property market.
There was also the tightening of APRA regulations which definitely has impacted the ability of investors to access finance, but again it doesn’t seem to have dramatically reduced market activity as there are still plenty of buyers ready with finance approved.
So what does it mean? I think it means the market is well positioned for both buyers and vendors right now. We just need more vendors to believe that. It’s steady and solid and that’s a great place for a property market because it shows confidence and breeds confidence. That works for everyone.