Is Sydney's Property Downturn Nearing an End?

With the RBA leaving rates on hold at a historic low of 1.00% and economists predicting further rate reductions, does this signal a turn around in Sydney's property downturn?

By The Real Estate Establishment

Today, the Reserve Bank of Australia left cash rates unchanged at a record low of 1.00%. Couple this with a softening approach by financial institutions to serviceability criteria, an increase in competition for interest only investment loans between lenders and a recently elected federal government with no agenda for property tax reform - the environment for a positive real estate market could be upon us....... And the data is starting to indicate just that.
The Domain Group have recently released their Domain House Price Report which demonstrated prices did fall in Sydney by 0.4% across the June quarter, however this was the smallest decline since March 2018. Sydney also maintained an auction clearance rate of 69% over July which Domain quoted as being the highest clearance rate in more than 2 years.
Locally, our team at The Real Estate Establishment have noted steady improvements in buyer enquiry and open house attendance rates since Mid-May of 2019, with significant inspection numbers for properties demonstrating fair and reasonable market value. Our business has also maintained a 100% auction clearance rate within a market that has traditionally “proceeded with caution” when interacting with Auction Campaigns.
Our personal observations reflect that of industry commentators which is that the real estate market has experienced significant change in value over recent years, however the downturn appears to have come to an end, with early indications of a sustainable, longer term recovery providing some stability to both buyers and sellers over the foreseeable future.