I have said in the past, that the promise of a return to good conservative government, will inspire confidence in the community. People will not have to wait for the federal election until their confidence in the market returns. Simply knowing there will be an election this year would be a sign for the smarter ones to start making their move.
The slower ones would wait for the outcome of the election, before moving.
Many people cannot wait for a return to the safety of good governance as in the period of the Howard years.
It was the Hawke Keating period from 1983 to 1996 that presided over the highest interest rates, and sharemarket crash of 87 that was the hardest period for many home owners. The current news of calling the election 7 months down the track will not be good for labor, but it will inspire some confidence in the markets. Some people can now see the light at the end of the tunnel. There is also the possibility that the election will be held sooner than that date.
This is not a push for fhb's to suddenly rush out and buy, in fact it has nothing to do with fhb,s at all.
I will not be surprised if there is no boom in buyers, or the number of sales remain down compared to previous activity. The reason for this is many people have spent time extending, renovating and refurbishing their existing properties, so they will not be selling and upgrading to larger homes. However when they do decide to sell for whatever reasons, the price of their homes will be much greater, to reflect the amount of capital injected and the substantial improvements made.
Those home owners who are on the escalator of selling the first home to upgrade to the larger home, who did not renovate their existing homes, will see renewed interest from buyers. The low interest rates will stay for an extended period, whilst the US and Europe are in the doldrums.
I expect the outer suburbs, regional and country areas will see the greatest activity and gains, as savvy buyers ignore the ridiculous prices of the inner city areas.
Your local news media will not know the difference, since they simply feed paid advertisers propaganda and pretend it is news. Many of us are looking forward to the common sense and sanity that will hopefully return to this country very soon.
The damage done by wayne swan and glen stevens by raising interest rates in late 2007 right through to 2012, coupled with the carbon tax, and the huge increase in energy costs contributed to the most damage done to ordinary families, in decades since the last disastrous labor govnut was in office.
Ordinary families do not buy houses at the top price in the inner city, they prefer the cheaper suburbs to raise a family. Only the DINKS, the singles and overseas cashed up buyers flock to the city, to buy and rent.
I predict a flurry of cheaper, smaller units will be built to cater for the inner city workers. The real growth and housing market will continue to flourish in the middle to outer suburbs. There is a pent up demand out there, so you should ignore the silly posts about prices dropping.
Oh and if the chinese were allowed to build a whole suburb, together with fast trains and transport, the new suburbs they build would reduce the inner city prices only. I cannot see any government allowing the chinese to do this, but I would welcome their innovation and ability to provide very fast trains between out city and suburbs. enjoy
