So finally we have the federal election campaign underway – what does this mean for our beleaguered housing markets?
Home values across Australia’s largest capital cities have been falling since they peaked in late 2017.
In fact it looks like this will be the biggest and longest national decline in home values for almost 40 years (or since records began in 1980).
Consumers have lost confidence, first buyers went on strike now sellers are holding back unless they really have to sell.
And while the property markets have started 2019 with a positive note, with more interest from buyers, auction clearance rates rising, the banks chasing more business another hurdle has been put in our way.
A federal election and elections create uncertainty and when there’s uncertainty buyers put their hands in their pockets.
Watch this week’s 11 minute Property Insider Video as Dr. Andrew Wilson and I discuss the likely implications of the election campaign.
Watch us discuss:
- Election date is Saturday 18 May
- This will clearly disrupt a recovering market with agents avoiding auction sales campaigns in the next month
- At the same time the late Easter and holiday period will see a closing down of the property market at least till the end of April
- This means the current record decline in seller activity will be amplified over next month
- Buyers will also be wary given until they know who will win the election
- The election campaign will end close to the winter market shutdown that commences after Queens Birthday long weekend (June 10)
- The election will act to distract the property market
- Buyers and sellers wary of election outcome – so will be sidelined
- The election result is likely to be closer than previously thought based on latest polls. And the market hates uncertainty
- The significant Labor Tax policy will be the focus of scare campaign exacerbating all the above
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