What does the upcoming federal election mean for property prices in the Hawkesbury?
24 June 2016
It’s not easy to sift through the rhetoric and opponent smearing of politicians to figure out how their policies will really impact the housing market. It seems Labour plans to limit negative gearing to new homes only, while Liberal will retain it unchanged. Both claim to want to improve housing affordability… which is another way of suggesting that they want property prices to soften.
The latest housing data released this week by the Australian Bureau of Statistics (ABS) shows that property prices are already cooling off. The Residential Property Price Index (RPPI) fell 0.2 per cent in the March quarter 2016. This was the first fall since the September quarter 2012.
The CoreLogic June 2016 Housing Market & Economic Update notes that new listings are 1.9% higher than they were a year ago nationally and 1.3% higher across the combined capital cities – so there are more houses for sale. The report also notes that the typical capital city house is currently selling at 44 days compared to 42 days a year ago – so houses are taking longer to sell. In positive news, auction clearance rates have rebounded in 2016 and were in the high 60% range last week, averaging 68.4% so far this year.
Greg Jericho, from The Guardian notes, “Since the end of 2011 when the Reserve Bank began cutting rates, house prices in Sydney have risen by 53%, compared to overall inflation rising by just 8.4% in that time.” The housing market has had a glorious rise and the Hawkesbury LGA is no exception, with the median house price currently sitting at $640,000.
Regardless of whether the Liberals retain leadership or Labour takes the reins, we should expect the market to soften in the Hawkesbury in the immediate term.
To help you better analyse where the parties stand on housing issues, check out this article from realestate.com.au