We’re now seeing tangible evidence of the upturn in major real estate markets. A month ago, I noted the upturn in sentiment caused by “a series of fortunate events” but commented that it would take time before consumers could actually feel the difference. A month further on and there is mounting evidence of recovery and upturn. Price data from CoreLogic and SQM Research shows that most capital cities recorded increases in price indexes in July. Clearance rates continue to improve in the biggest cities and are much stronger than 12 months ago. Real estate professionals at the coal-face of the industry are observing stronger activity, with buyers competing for properties. I expect the trend to continue, because we are still in the early stages of feeling the impact from those recent game-changing events: the election result, easier finance, interest rate reductions, tax cuts and increased spending on infrastructure. Three major institutions – ANZ, CBA and Genworth – have all published reports forecasting a return to solid price growth in the second half of 2019, with stronger performance in city markets in 2020. It’s time for real estate consumers to get busy.
By Terry Ryder – Australia’s Leading Independent Property Researcher