Buyer’s market declared | The Real Estate Wrap with Leanne Pilkington
Welcome to this week’s Real Estate Wrap with Leanne Pilkington, Managing Director of Laing+Simmons and President of the REINSW. Cautious optimism has begun to permeate the market and there are now signals emerging to indicate such optimism is justified.
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Hi everyone, Leanne Pilkington with you for the market Real Estate Wrap for the week commencing May 27.
Boy, what a difference a week makes, right? That unwinnable election, the miracle result that Scott Morrison achieved last weekend has at least given more positive sentiment in the market. Obviously, we know that negative gearing changes will be gone as a result of that.
We have also, since then, had APRA come out and say they’re going to reduce the interest rate that people need to be able to repay back on. So, from 7 and a quarter down to 6 per cent which, effectively, will just mean people will be able to borrow a little bit more money, which is great.
We know lending has been an issue for buyers in the last 12 months, and there is conversation around an interest rate cut at the next Reserve Bank meeting on the first Tuesday in June. Lots of stuff going on. Much more positive sentiment, which is lovely.
697 properties went to auction on Saturday. A preliminary clearance rate of 69.9 per cent which is the highest we’ve seen this year. So lots of really interesting things happening to talk about.
Lots more information here in the Wrap. So please download it and check it out. I’ll see you next week.