Like most people, I believed the polls and thought we’d have a change of government at last weeks federal election.
Ever since Labour’s negative gearing policy was announced I, along with the majority of buyers and sellers, was anticipating and preparing for a long period of uncertainty in the Perth property market as we waited for the changes to be implemented and the affects played out.
So with Scomo staying and the spectre of negative gearing gone, is the handbrake now off the market and will prices start to recover?

There’s been two further pieces of news this week that are also likely to positively influence the local market.

First is that the Reserve Bank is expecting to make not one, but two further interest rate cuts this year, and the second is that APRA is set to remove the minimum 7.25% serviceability test placed on lending.

Both of these changes are likely to boost home loans and borrowing capacity, albeit the reduction in interest rates tells us that the overall economy isn’t quite doing as well as the government may have been trying to sell us.

That said, the economy that I’m most interested in is the WA one, and the word on the street is that confidence is picking up in the big end of town.

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So in a few months time will we look back on this week and be able to say, “That’s when it all started moving again”?.

I’m cautiously hopeful. Interesting times.

Photo by Kate on Unsplash