Via Investor Daily:
AMP Capital chief economist Shane Oliver says the latest resurgence in property prices will be tempered by weak economic conditions and lending constraints.
There are plenty of positive indicators to suggest property prices will soon be booming again. The boost from the election result which removed the threats to negative gearing and the capital gains tax discount, RBA rate cuts, positive headlines around the relaxation of the 7 per cent mortgage rate serviceability test and tax cuts have helped provide a bounce in home buyer demand at a time of low listings.
“This is clearly evident in a continuing rebound in auction clearance rates where August saw the best monthly average clearance rates in Sydney since March 2017 and in Melbourne it was the best month since August 2017,” Mr Oliver said.
