20th February 2019 / Bradley Brown: WHAT CAN YOU EXPECT FROM THE PROPERTY MARKET IN 2019?

The real estate industry experienced a changed landscape last year, which meant that both buyers and sellers had to adjust to conditions that are likely to carry through in 2019.

Stricter lending conditions certainly had an impact on the property market in 2018. With the final report of the Royal Commission into the Banking and Financial Services sector released earlier this month and the level of public criticism received from interim investigations, we can expect banks to remain cautious in their approach to lending.

From the 76 recommendations published in the report, a number of reforms have been suggested in the mortgage broker sector, which could see borrowers being charged an upfront fee to use a mortgage broker. While some have warned that increased costs could affect households looking to buy, this is tempered by encouragement from the Federal government not to tighten lending any further. In December last year, Treasurer Josh Frydenberg stated that "banks need to balance their responsible lending obligations with the need to keep credit flowing, providing much-needed access to finance for families and businesses".

Expense and income verification of potential borrowers is likely to continue to be stricter, impacting on the ability of potential buyers to secure finance in a timely manner to purchase a property. This may affect the chosen sale method of property owners in 2019 and we certainly recommend obtaining expert advice on the sale and method that's right for your property and circumstances.
In response to some of the current economic factors at play, such as falling house prices, softer consumer spending, stricter lending conditions and the final report from the Royal Commission, the RBA has decided to maintain a cautious approach to the economy, leaving interest rates on hold again at 1.5% in their first meeting for the year.
The Federal election is likely to be in May and a change in government could have an impact on the property market, particularly as a Labor Party win may involve plans to restrict negative gearing and capital gains concessions.

The fundamentals underlying Australia's property market remain strong; our economy is stable and robust, supported by record low interest rates, plenty of job opportunities and strong population growth. In December 2018, the RBA reported that the Australian economy is performing well, with 2.8 per cent economic growth and 2.5 per cent employment growth.

If you're selling in 2019, our advice is to focus on the presentation of your home and together with your agent, develop a sales and marketing strategy that is tailored to your property and circumstances. A multi­channel marketing program is essential, ensuring that from a large pool of potential buyers, your property is showcased to serious, qualified buyers in a highly targeted manner.

We would be thrilled to assist you with any advice or preparations as required!