Article sourced ken from Bloomberg.
By Sybilla Gross, 8 Aug 2019, 5:00 AM
After a two-year slide, Australian house prices look to have bottomed out, sending buyers flocking back to the market.
Case in point: An auction for a four-bedroom house in the Sydney suburb of Ryde on Saturday attracted about 100 people. Spirited bidding pushed offers A$226,000 above the reserve price, before it finally sold for almost A$1.5 million ($1 million) — a buzz last seen during the boom years.
“A lot more people now are getting concerned that things are going to go up in the next six to 12 months so they’re trying to buy now,”
…turnaround in sentiment can be traced to three factors: interest rate cuts … mortgage rates to record lows; loosening of mortgage stress tests; and the surprise re-election of Scott Morrison’s government in May, which killed off the opposition labor party’s plans to wind back tax breaks for property investors.Rising home prices may help underpin consumer spending by making homeowners feel wealthier.
Quantum Research Comment
“We are selling apartments at list price, and in Sydney at a 5-7% discount and that was in the first half of 2019, moving into late 2019 prices have established. The Blomberg article that 80,000 over-supply in apartments is somewhat over-simplistic, with new demand at a standstill and new buyers entering the market are 77,000 children complete HSC each year that eventually want to own a home. In March 2019 ABS state that in March ’19, only 17,000 new Apartments commenced, down 50% from its high in March ’16…”
Peter Gribble 10/8/2019
Full article is at: https://www.quantumresearch.com.au/australias-housing-market-suddenly-heating-3/