Santa may still be packing his sleigh and tinsel away, but the earlier arrival than usual of the Easter Bunny could boost local property market activity in the first quarter of 2018.
Vince Labbozzetta, director of Raine & Horne Liverpool, says Good Friday falls on March 30 compared to April 14 last year.
The earlier timing, combined with a possible August interest rate hike, may prompt more owners and investors to list properties earlier in 2018, says Mr Labbozzetta.
He says there’s also evidence that local investors who have enjoyed substantial capital growth since 2012 have decided the time has arrived to realise some profits and are listing their properties for a first-quarter sale.
“An earlier Easter is a factor in some investors seeking a faster sale, and for this reason, auctions with their shorter marketing campaigns of 40 days could be the preferred method of sale in the lead up to the March holiday break,” Mr Labbozzetta said.
Tighter lending conditions for investors and a renewed threat to negative gearing for established properties were other factors driving some investors to rebalance their property portfolios.
Federal Labor has restated its plans to limit negative gearing to new investments. However, any existing investments will not be affected by this change and will be fully grandfathered.
[social_quote duplicate=”no” align=”default”]“While the federal opposition’s plans won’t seemingly impact existing investments, it will make established properties less attractive to future investors, given that the tax breaks afforded by negative gearing will extend only to new properties under Labor’s plans,” Mr Labbozzetta said.[/social_quote]
“As a consequence of tighter lending conditions and other potential political interventions, I expect a steadier real estate market in 2018, after many years of double-digit growth, and for this reason, property owners who work with those agents who have experienced different price cycles will achieve the best results.”
Mr Labbozzetta’s start in Liverpool real estate coincided with the dot.com bubble inspired technology wreck in 2000 that impacted the broader Australian economy and property markets.
In 2007, the Global Financial Crisis gripped the economy and affected real estate activity until 2012.
“In times where there is more balance between buyer demand and the supply of properties for sale, you need an agent who has more experience and market knowledge,” Mr Labbozzetta said.
