The 18th May 2019 was the day that Australian, especially the Labor party, got a democratic shock as the LNP held-on to government for another 3 years. As quick as the results were declared and accepted, we all started to hear that the Property Market was also a winner making big turns upwards. But was this really the case or is this just wishful thinking? WISHFUL THINKING, while the property market is likely slowing its descent, it is also running the cycle we all expect it to take. Is it happening quicker than under an ALP government? We will never know, so let’s be positive about what we have.

What’s fueling the thoughts of a rebound?

• Developers across the country, specifically from Sydney and Melbourne, have been quick to comment that the LNP staying in government is bringing comfort to buyers and has developers bullish on coming back into the market, but we aren’t yet seeing an increase in development applications since the election result, but we will keep on watching.
• RBA is expected to start its next round of interest rate cuts, 2 or 3 cuts expected. What does this mean? Well, mortgages will cost less, but this also means that the inflation rate is lower than the RBA’s target rage. The current headline rate is 1.8%, while the RBA’s target rate is 2-3%, meaning the RBA wants the costs of good and services to rise.
• Properties on the market are surging up, well this may also be a result of real estate agents and people thinking it is not a good idea to have your property on the market during an election.
• Banks are talking about being ready to lend more and lead easier, even with findings of the royal commission.