Housing market test: Why this weekend's auctions can determine where real estate prices go from here
- House prices can be set to take a turn based on weekend sales and auctions
- Economist Jason Murphy noted positive evidence from federal elections
- The loss of labor means no negative gearing changes or changes in capital gains tax
- He noted that there were nearly 2,000 homes on the auction, double the last weekend
Falling prices in the housing market could recover with a doubling of the number of objects auctioned this week of last week.
Nearly 2,000 homes have been placed at auction throughout the country, which is double the number of properties that were listed during the federal elections last weekend.
Weekend sales would be a strong indication of how the market is going, and strong sales figures may indicate a resurgence for sellers.
Economist Jason Murphy wrote for news.com the jump in the number of auctioned houses was one of the many good signs on this side of the national vote.
& # 39; There are negative changes in gearing and the capital gains tax change is not happening, he wrote.
& # 39; This is likely to have a positive effect on prices, but how big will it be? & # 39;
Falling prices on the housing market could recover, since the weekend turnover would be a strong indication of how the market will run (stock photo)
Nearly 2,000 homes have been placed at auction throughout the country, double the number of properties that were listed during the federal elections last weekend (stock photo)
The positive outlook comes together with some of the biggest price falls in a decade.
Earlier this year, CoreLogic data showed that home values have fallen by 7.2 percent in the last 12 months.
The dive was rated as the worst since February 2009, when the market plummeted by 7.4 percent and the world was thrown into a global financial crisis.
Average prices in Sydney were around $ 780,000 in April, while houses in Melbourne were just under $ 622,000 on average.
Although Mr. Murphy said that the expected fall in interest rates by the Reserve Bank of Australia on June 4 would have a positive flow-through effect on prices.
& # 39; Also home buyers could soon borrow more, because the bank supervisor allows banks to use a lower benchmark to find out if borrowers can repay money. & # 39;
Mr Murphy noted that banks had given the green light to set a lower rating, which would reduce buyers' access to home consumer loans.
He went on to say that an increase in house prices and the number of successful auctions would strengthen confidence in sellers and investors.
Daniel Walsh, the founder of the broker in Your Property Your Wealth buyers, said that confidence was restored after the real estate elections.
Earlier this year, CoreLogic data showed that home values had fallen by 7.2 percent in the last 12 months (stock photo)
Brisbane is tipped to benefit most from a four to six percent increase in prices the following year, followed by Adelaide and Geelong, which is expected to rise by three to five percent.
Affordable suburbs with high rental yields are the largest movers in the coming 12 months.
& # 39; Today we have had a dramatic increase in the number of questions & # 39 ;, Mr. Walsh to Daily Mail Australia three days after the election.
Mr. Walsh said that economic confidence would recover "now that these crazy policies on negative gearing will not come".
Over the past year, Brisbane's average house price has fallen by 1.8 percent to $ 532,308, according to CoreLogic data.
Mr. Walsh said that homes that now sell between $ 350,000 and $ 650,000 would likely increase by four to six percent the following year, which could cause prices to rise nearly $ 40,000.
Mr. Walsh said that economic confidence would recover "now that these crazy policies about negative gearing will not come" (stock photo)
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