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House prices rise for the first time since 2017

July 2, 2019 Uncategorised

There is definite optimism for the national property market after analysing the latest figures. It seems there is light at the end of the tunnel for both Sydney and Melbourne. After following a multi-year decline in dwelling prices, the most recent data released from property analyst CoreLogic shows the first increase in house prices since 2017.

According to the home-value index, Melbourne managed to rise by 0.2% in the month of June. A marginal yet significant change. This should provide comfort to homeowners and begin to install confidence back into the property market.

The results of the federal election and the subsequent cut to the RBA cash rate are likely to have influenced this data resulting in the increase in property prices.

A new found stability within the federal government, along with the removal of uncertainty surrounding changes to negative gearing and capital gains tax discounts, has brought about increased security and enhanced assurance in the housing market.

On top of this growth, auction clearance rates have also dramatically recovered since the federal election, interest rate cuts and the relaxing of borrowing standards.

The second RBA cash rate cut announced today in conjunction with the raft of market stimulant announcements since mid-May, should provide a further positive flow through to housing demand in the coming months.