The auction clearance rates have shot back up to 76 per cent on Saturday, May 16, a number of new properties have hit the market and we’ve seen lines snaking down the street for opens.
Lack of stock is still driving the market, with new listings down 35 per cent compared with last year.
NAB released their latest predictions for the property market, predicting a 10 per cent fall this year and 5 per cent next year.
Major support from the Federal Government will help reduce significant short term price falls.
The Reserve Bank (RBA) has forecast an unemployment rate peak of 10 per cent in June 2020, falling to 9 per cent by the end of the year and dropping further to 7.5 per cent by the end of 2021.
The forecast period is until June 2022 and has the unemployment rate remaining well above the pre-Covid-19 level of around 5 per cent. Additionally, the RBA is not forecasting underlying inflation to return to its target range of 2 per cent to 3 per cent any time between now and June 2022.
The official cash rate is at an all-time low of 0.25 per cent and is the cheapest I have seen in the decades I have been purchasing property. It will be interesting to see once the Federal Government and banks end their financial support and the economy moves into recovery phase.
Despite these challenging times, we continue to help people take advantage of the changing market and realise their property dreams.
Whether that’s finding their ideal home or investment property or just answering questions about the current market, we are here for you in all your property needs.
