Low interest rates reviving pre-election Canberra market: Herron Todd White
Low interest rates have helped nullify the usually adverse feelings of uncertainty in Canberra in the lead up to the federal election, according to valuers Herron Todd White.
While the property market in the national capital is always affected by federal elections – after all, one in four Canberrans are civil servants – this time around there’s a subtle difference.
Interest rates are at an historic low of 2.5% and it hasn’t been this cheap to buy a property since the 1950s.
‘’It almost seems that, while some are sitting around discussing the potential repercussions of the poll, others are out in the market capitalising on their good fortune,’’ Herron Todd White says.
‘’The lower interest rates have had an impact across the range in terms of potential buyers and vendors engaging in the market. Young people and couples looking for a good time to enter the market now have possibly one of the best incentives to buy.
‘’Also older couples with kids see this current moment as a great time to sell the old residence and find a bigger one.
‘’You can see how the market stays alive in uncertain times like these when you have a wide range of buyers and vendors all active within the market,’’ the property valuer says.
Herron Todd White says observers could interpret the interest rate cuts as the catalyst for reviving the property market in this pre-election time with experts at Allhomes forecasting a 6% increase in property transfers in Canberra compared to last year.
‘’Also, experts at Australian Property Monitors recorded a strong finish to the final quarter of 2012 with home prices increasing 2.1% in Canberra - which spilled over to the first quarter of 2013 - and is going to stay strong with the interest rate cuts.
‘’Therefore, no matter what the outcome of the election, if interest rates remain this low you can definitely predict that the property market in Canberra will continue to remain stable - and possibly grow - after the election when any uncertainty fades.’’
The Canberra house median is $555,000, according to RP Data. Two properties selling for around this figure are:
564 Northbourne Avenue Downer, ACT
The property (pictured below) sold for $505,000 on August 2. It previously sold for $408,000 in August 2009 after being on the market 152 days and $350,000 in May 2007 after being on the market 29 days.
The property (pictured below) sold for $585,000 on July 15 after being on the market 60 days. It previously sold in June 2002 for $285,000, July 1995 for $183,500, January 1992 for $152,500 and August 1991 for $43,500.
Picture of Canberra courtesy of creative commons/flickr.