It’s not possible to foresee the effect on the Australian property market with a change of government. However, this doesn’t mean that there won’t be any effects overall! It all depends on the policies which are implemented by the future government of Australia.
We can look at more clearer indicators from the Reserve Bank of Australia (RBA) as the central bank of Australia. The RBA makes monetary policy decisions to try and maintain stability throughout the economy and keep it growing sustainably.
The RBA has been easing for a while now, which means they’ve been keeping interest rates low for a very long time, but this may be coming to an end. Experts predict an increase in June, which will impact interest rates. How will that impact the real estate market?
The RBA governor’s statement this month ended with “The Board will assess this and other incoming information as it sets policy to support full employment in Australia and inflation outcomes consistent with the target.”. This shows that the RBA is looking to lead the Australian economy forward into a strong, proWith a combination of government policies and RBA policies, we most probably will see a steady trajectory in the real estate market, improving opportune sellers to obtain a premium for their homes.sperous future. Obviously, the government of Australia will be voted in as part of the election process.
So what is the good news in all this? The future is looking good for homeowners with variable mortgage rates set to stay at historically low settings for at least a month. On the other hand, fixed mortgage rates are consistently on the rise. I expect them to keep getting higher in the future. Maintaining a balance will be key for homeownership because of higher costs for debt in the long run.
With a combination of government policies and RBA policies, we most probably will see a steady trajectory in the real estate market, improving opportune sellers to obtain a premium for their homes.
If you miss the opportunity to sell at the most appropriate time. Know that there will be some influence on the market during the or post-elections. However, the Australian market is young in the world’s scheme of things and this will not last long. The market will most probably to trend towards a positive outcome.
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