Hi,

942 auctions were reported to Domain over the weekend with 601 selling under the hammer, resulting in a clearance rate of 64%.  This is slightly less than last week being 66% on 1,065 reported auctions.  The same weekend last year resulted in a clearance rate of 60%.

Even though the clearance rate is stronger than last year, the sentiment out in the property market feels very much the same.  Trump’s trade war and the federal election has resulted in buyers cooling their jets somewhat on what had we all had thought was going to be a very good year in property.  My feeling this will only temporary.

There has been a lot of talk about interest rate cuts over the past week with some economists and NAB predicting next month could be a 0.5% rate cut.  Others predicting we could see interest rate cuts upto four or five times this year.  Whatever it ends up being, it is almost certain we are not going to see  interest rate rises for quite some time.

Peter Dutton announced yesterday that he is proposing to enable first-time home buyers to deduct interest payments of newly built homes from their taxable income for the first $650,000 of a mortgage.  Labor has pledged to allow first home buyers to purchase a property with a 5 per cent deposit, avoiding the need for lender’s mortgage insurance.   Both parties are looking at ways to help more buyers enter in the market which could further put pressure on property prices.

Whilst there is a lot of economic talk which could result is property prices rising, as at today, the sentiment is cautious and I believe now could be as good as time as any to buy.  I have purchased five properties for my clients so far this month without including my team’s purchases.  There are some exceptions to this of course which we have seen multiple buyers competing to secure a property, but the Melbourne property market overall is patchy and is opening up the door for some buyers to purchase a property they did not believe they would be able to within their budget.

This weekend there will be no auctions due to the Easter long weekend and the following weekend still quiet due to Anzac Day, however auctions will be back to normal from the 3rd of May.

Have a great long weekend and the market wrap will be back on the 5th of May.

Kim Easterbrook – Managing Director