The latest Allhomes data revealed that house prices fell by 0.15 per cent from June to record a median sale price of $600,000 over the July quarter, while unit prices slipped by 0.46 per cent to record a median sale price of $375,000. Experts attribute this to a correction following strong price growth seen over recent months.
Due to the federal election, buyer demand fueling house price growth was also seen to ease across the year by 4.6 per cent. The drop in Canberra auction numbers also serves as a proof of the lackluster housing demand as of late. Stock numbers also fell last month by 18.1 per cent over the year, as only 558 new vendors listed properties for sale on allhomes.com.au.
It seems that the federal election has dampened the confidence of vendors and consumers wanting to enter the market. According to the Westpac/Melbourne Institute’s index of consumer sentiment, confidence has slid by three per cent from June to July. However, it is not unusual to see a dip in sentiment surrounding an election. It is likely that their confidence would soon return as political uncertainty diminishes.
Furthermore, the rate cut by the Reserve Bank of Australia that brought the interest rate to a new historic low of 1.5 per cent might spark activity levels, particularly as the market moves into the spring selling season when market activity is usually at a high.
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