The property market bounces back

Key points
• Confidence surge with home buyers and sellers
• Interest rate cuts, with more expected
• Mortgage applicants able to borrow more
• Negative Gearing and Capital Gains remain unchanged

There has been renewed confidence from home buyers and sellers alike. According to Domain.com.au, attendance at open houses in Victoria has surged by 9 per cent. There are also more Victorians wanting to put their homes on the market with requests for property appraisals up 12 per cent.

In the wake of the polls, the bank regulator has taken the market by surprise by loosening the lending criteria. Banks, credit unions and the like no longer have to assess home loan applicants on interest rates of 7.25 per cent. This has now been relaxed so home buyers should be able to borrow more.

Further to this, the Reserve Bank has already cut interest rates by 0.25%, and further reductions are expected.