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Jessica Darnbrough
Despite sluggish new home lending growth and poor consumer optimism, one aggregation head believes the property market will rebound in the not-too-distant future.
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Speaking to The Adviser at the recent Aggregator Roundtable breakfast, hosted by Genworth, National Mortgage Brokers’ managing director Gerald Foley said he expects to see the market pick-up after the Federal election later this year.
“I think when the election was called earlier this year, people went to election mode. They put the brakes on and have decided to wait and see what the outcome of the election will be,” he said.
“While not everyone is happy to wait, given that the election is still some months away, I do expect to see a pick-up in buying activity at the end of the year, once the unknown has been finalised.”
“I expect the last two months of 2013 to be cracking.”
Mr Foley’s comments are largely supported by RP Data’s research director Tim Lawless, who believes the looming federal election is adding to overall homebuyer nervousness.
Speaking to The Adviser earlier this year, Mr Lawless said there is always some uncertainty surrounding a federal election, which acts to subdue activity – especially in certain markets such as Canberra.
“A lot of investors will be wondering whether or not there is going to be changes to the taxation regime if there is a change of government. Others will be wondering if there will be changes to the various homebuyer grants. Because of this, I think we can look forward to seeing a lot of potential homeowners sitting on their hands,” he said.
