It is darkest during the hour before dawn and housing stock is usually at its lowest level the month before Spring. Given that the Federal Election has now been set for September 7, it is a fair call to say that the traditional Spring selling season will hold off until mid September. In turn, buyers already facing a lack of inventory will see the situation tighten even more in August.
Another interest rate cut combined with an election campaign announcement and a low level of listings, will keep the advantage with sellers, particularly in the Sydney and Melbourne market. In comparison with the Winter of 2012, the market has essentially gone from a near bust to a near boom. The market for houses below $1 million has increased about 15 percent from its low in the past 12 months.
Other indicators also suggest healthy market conditions. Time on market is now under 40 days, auction clearance rates are hovering at 80 percent, there are multiple buyers and offers per property transaction and sale prices are exceeding sellers’ expectations. The thought that the property market reacts poorly to elections has been destroyed in 2013 as the market continues to rally.