The Federal Budget And The Property Market The Federal Budget And The Property Market

The Federal Budget And The Property Market

The Australian Federal Budget 2017 looms on the horizon.

On May 9, the Federal Government will publish its economic policy plan; voters will learn how it impacts the country’s property market.

This lead-up time is often an uncertain time for prospective vendors and buyers who want to know what lies ahead before making binding property decisions.

I do not know what is in the Budget. That’s a job for the Treasurer.

But one thing I do know is there is no sign of property buyer demand slowing in Melbourne.

Official results from CoreLogic this week show 1,232 auctions were booked, up 50% in seven days, on which 79.9% sold, up 4.7% week-on-week.

It was a similar story at the Real Estate Institute of Victoria, which arrived at an 82% clearance and whose president, Joseph Walton forecast “another auction record is set to fall this year with the highest number of auction sales ever for the month of April”.

More sales, more listings: good news for both buyers and sellers, right?

Of course these kinds of numbers and trends are not evident in all states and territories.

But then Australia is not a single property market.

There are markets inside markets inside markets, and the health of each local jobs market and state economy impacts its real estate market more than any factor – even federal budgets.

This is why, if you are considering selling or buying in Melbourne this year, May 9 should not signal too much alarm.

Business goes on. May 10 will roll around. Housing values will stand firm because people want to live in Melbourne – always have and always will.

Call my team today to arrange an obligation-free property appraisal.

Greg Hocking