The northern beaches property market is expected to bounce back, according to a report by realestate.com.au.
Industry professionals forecast that the likely slash in the cash rate in the coming months will boost the prices on the northern beaches. The peninsula is at or beyond the bottom of the market, said, agents.
The Reserve Bank of Australia kept rates on hold on Tuesday, but they will likely cut the official cash rate once or twice before the end of the year, according to Peter Kelaher, a property buyer on the northern beaches.
“Banks have reported heavy losses to shareholders, and they will start to loosen up their purse strings. I called the bottom of the market four to six weeks ago, and we will now see the slow progress of stabilisation then a slow rise in the market starting from the lower end,” he said.
Once rates drop, buyers at the more affordable end of the market could borrow more and would have more confidence to snap up properties. This will stimulate the middle and top ends of the market and the up cycle would take off, Kelaher said.
“The market will enter its cycle up phase in three to six months then it [stays] upwards for four years,” he said.
Kelaher also said that investors are already scouting for good properties before negative gearing changes in January if Labor is elected later this month.
An interest-rate cut would play an important role on the northern beaches property market. The former would throw fuel on the fire of property prices, said Steve Thomas of Belle Property.
“What we are hearing in the northern beaches is that if the market hasn’t hit the bottom yet, it is close,” he said. “People are seeing value, and they are out looking, I think investors are sniffing out deals as well. If we look at the northern beaches, we are insulated. We are not carried by investors properties but have a high number of owner-occupiers who don’t sell unless they have to. We might see some sideways movement but no more price drops,” he said.
