The conflicting signals keep coming here.
US stocks put in a strong session overnight. The Aussie futures market rose over 2% alongside them.
This volatility is lots of fun for options traders if they can catch these short-term moves.
But it makes the stock market difficult to read on a medium-term basis.
And what’s this?
The Australian government is preparing a stimulus package that will likely target infrastructure and tax cuts, according to the Australian Financial Review.
It doesn’t take Einstein to work out that a side effect of COVID-19 doesn’t look too shabby for the Australian property market.
Mortgage rates are now lower. Any infrastructure spending will lift the nearby property values.
And land values will eventually absorb any tax cuts.
If you’re still paying any attention to any permabears on real estate…I say stop.
Instead, listen to Michael Satterley, a 40-year veteran of development.
He’s quoted today as saying the upswing in Melbourne lot prices is ‘well under way.’
It’s unlikely to slow down anytime soon, either.
The Australian Bureau of Statistics reported this week that building approvals are now at a six-year low.
Builders still active are also pointing out that some of their key inputs from China are becoming hard to source.
My colleague, Catherine Cashmore is a buyer’s agent and property market analyst.
Catherine tells me that one of the leading indicators for price growth is the clearance rate.
These are rising on a high number of auctions.
All these taken together paint a fairly bullish outlook for this housing upswing. Don’t dilly-dally if you’re on the fence about this.
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PS: While Sydney and Melbourne find their house price peak, This Aussie city appears set for a big growth phase over the next few years… Click here to download your free report