The housing market is affected by the & # 39; ScoMo effect & # 39; whose fall in property prices is FINALLY expected to end after the Premier's election victory
- House prices rose 0.3 percent in Sydney and 0.1 percent in Melbourne last week
- CBA received most home loan applications within 10 months at the same time after the vote
- Bank analysts said the interest rate cut, the election result, caused the rebound
- The national average is expected to rise again in July after falling by only 0.5 percent
House prices are rising again after Scott Morrison's shock-election victory dispelled fears of negative gearing restrictions.
The median real estate prices rose by 0.3 percent in Sydney and by 0.1 percent in Melbourne the week after the vote after a fall of 10 percent this year.
Buyers are flocking back to the market, while the Commonwealth Bank says they had made the most home loan applications in the last ten months.
Scott Morrison promised no changes in negative gearing or discounts on capital gains that Labor promised to lower so that house prices are expected to rise
Across the country, median prices fell by 0.5 percent in April, while experts expected this to flatten and rise again in July.
Macquarie Bank attributed this to the election result, expected interest rate cuts and the Australian Prudential Regulation Authority, which solved the loan restrictions.
& # 39; With the unexpected coalition victory, APRA's policy change and an expected fall in the Reserve Bank rate in June, we are more confident that house prices in Australia may rise within a few months, & # 39; he said.
& # 39; This should work towards a better growth of home financing and building approvals. & # 39;
Median property prices rose 0.3 percent in Sydney last week following the unexpected coalition election victory
AMST Capital chief economist Shane Oliver predicted that the same factors, along with Mr. Morrison's first home buyer policy, would prevent greater price falls.
& # 39; The combination of removing the threat to property taxes, previous interest rate cuts, financial assistance for home buyers and APRA lowering its seven percent interest test indicates that house prices are falling earlier and higher than we expected, & # 39; he said.
& # 39; We now expect house prices in the capital to fall on average by 12 percent – of which they have already done 10 percent – instead of 15 percent and later in the year. & # 39;
Australian interest rates have reached a record level of 1.5 percent since 2016, but it is expected that interest rates will rise to even more unknown levels.
Prices rose by 0.1 percent in Melbourne in the same timeframe and the Commonwealth Bank said they had the most home loan applications in 10 months last week
The fall in house prices has flattened since the largest month in January, which historically means that prices will rise again about seven months later.
Labor promised to limit the negative gearing to new homes and halve the tax reduction for capital gains from 50% to 25%.
Trailed real estate categories to claim this would lead to investors withdrawing from the market and keeping prices in free fall.
It was generally expected that the ALP would win, resulting in the rush to buy houses after the party's shock loss.
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