How will the election impact the property market?
September 6th, 2013 • No comments
Many investors are waiting eagerly to see what effect the federal election outcome will have on property markets throughout the country.
While there has been a boost to the market provided by low interest rates, investor confidence still remains at an all-time low in the lead up to the election; there is still a level of uncertainty around who will lead the next term and the effect it will have on the country’s economy.
Recently, research analysts RP Data and onthehouse.com released their separate findings on the market movements in capital cities following previous elections.
The findings provided some interesting insight as to what could be in store for the national housing market in the coming months.
RP Data found that Coalition election wins in 1998, 2001 and 2004 were all followed by increases in house values over the following 12 months.
The most recent two elections – 2007 and 2010, when Labor took power – saw house price fall over the following 12 months.
This doesn’t necessarily mean we should associate growth with a Coalition government – Labor had to deal with the GFC during the last two terms. House prices in capital cities have risen 4.9% in the 12 months to July this year, according to RP Data. With the election imminent, the market appears to be in a positive position.
Although the winning party is not yet a sure bet – based on the current interest rate environment, expectations point to housing markets continuing to strengthen amidst renewed consumer confidence and increase investor activity.
Seen once every four years, this pre-decision marketplace offers the savvy investor an ideal opportunity to secure the very best picks, whilst the majority sits on the fence.
No comments yet