Blog

June 28, 2019

Property Market Rebounds after Election

Here at CLK First National Echuca Moama we’ve had some positive auction results of late and things have started to move again after a sluggish first six months to the year.

Following the federal election on Saturday May 18 we have seen local real estate market activity pick up with an increase in confidence from both buyers and sellers.

The onset of an election is traditionally a stale-mate period for investors and has a negative impact on the real estate sector, with many sitting tight to wait until after voting day to make decisions about buying or selling.

Within days of the election campaign coming to an end there were reports of an increase in property investor activity, when business life returned to normal for politicians and voters.

The West Australian reported a doubling in inquiries from buyers within days of the Coalition’s victory, with agents stating that buyers were no longer fearful of Labor’s negative gearing policy. Many in real estate agreed that Bill Shorten’s proposed reforms to negative gearing and the capital gains tax had investors concerned, resulting in uncertainty and a lack of confidence for all involved.

Back east Realestate.com reported on May 30 that “a much-needed injection of buyer confidence is likely to sweep eastern Melbourne’s property market by spring”.

In the report Jack Boronovski stated that “Wakelin Property Advisory director Jarrod McCabe (declared) the Morrison Government’s surprise election win, along with an anticipated interest rate cut and the banking watchdog’s move to loosen lending criteria, would spark a market recovery”.

The same report had managing director of CBRE Residential Projects Victoria Andrew Leoncelli declaring that “there had been an ‘immediate shift’ after the election, with a 300 per cent spike in web traffic for the M City development in Clayton and Melbourne Square in the CBD”.

 

CLK Co-Director Troy O’Brien confirmed this injection of activity as good news for the local real estate market, with clear evidence of renewed confidence since the election.

“We’ve had an incredible few weeks here at CLK, with nine properties already sold in Echuca and Moama, and one in Mathoura, over a short three-week period in June – which was a great way to round out the end of the financial year,” Troy said.

“And the good news is that we are expecting this to continue, with not only first-home buyers and investors driving the market activity but also people relocating to our Echuca Moama area from Melbourne and its surrounds. 

“Melbourne prices were hit hard in the lead up to the election, which affected our local market as buyers were either not able to sell their Melbourne property or were selling their Melbourne home for much less than initially anticipated.

This meant many were forced to defer their plans to purchase here in Echuca Moama and relocate as planned,” he said.

Troy confirmed it’s always pleasing to see an increase in the Melbourne market with both buyers and sellers now breathing easier following the election result and subsequent certainty on housing policy moving forward. 

 A Domain report on May 20 stated that AMP Capital chief economist Shane Oliver and Domain economist Trent Wiltshire was “now expecting a more gradual pick-up in prices, with both first-home buyers and investors to drive market activity on the back of the Coalition’s policies”.

“Sellers will then respond to buyer interest, there might be a few people who were thinking about selling who have held off [until now],” he stated.

“A boost from both Melbourne buyers and sellers who had been waiting on the sidelines, will usually have a flow on affect to our area.  Sellers in the Echuca Moama area who were thinking about selling who held off until now will then respond to buyer interest, so we expect this positive market activity to continue,” he said.

Here’s a run-down of property sales here at Charles L King & Co First National for June 2019:

7 Murphy Way, Echuca

57 Murray Drive, Wharparilla

22 Ibis Way, Moama

195 High Street, Echuca

19 Skye Avenue, Moama

36 Chelsworth Drive, Echuca

17 Maiden Smith Drive, Moama

186 Hare Street, Echuca

1/118 Sturt Street, Echuca

19 Mitchell Street, Mathoura

 If you’ve been holding off from buying or selling since the federal election now is the time to make the move. Call our CLK Sales Team today on (03) 54 822 1111 for a free appraisal or visit our website at www.clk.com.au for the full range of properties we have on offer.