The Australian property market faced a number of tough conditions in 2018, resulting in the end of the boom times for Sydney and Melbourne, but does that mean we can expect doom and gloom in 2019?

A number of factors are set to shape the year ahead and whilst it won’t be all daisies, it’s possible that things could be looking up for Australia’s biggest cities and other markets around the country too.

Results of banking Royal Commission

A major roadblock for the Australian property market in 2018 was tightening credit conditions as a result of the Royal Commission.

Many borrowers have had a tough time accessing finance due to the banks being extremely conservative while they review the results of the commission’s report.

Luckily the report and its recommendations have now been released, providing banks with greater certainty around what exactly they can do and hopefully this means they can, and will, loosen their reigns a little.

Politics

International and local politics have always had some level of influence over the property market and with a federal election looming, 2019 will be no exception.

Uncertainty about whether or not proposed changes from the Labor government will come into effect, such as limiting negative gearing, will likely result in potential buyers sitting on the sidelines for some time. Buying activity may pick up again once there is greater political stability.

Interest rates

The Reserve Bank of Australia has kept interest rates on hold for more than two years now. The general consensus is that rates will remain on hold for the start of 2019 at least, which is good news for mortgage holders.

However there is a chance that rates will go up later in the year, if this happens it may deter some buyers. Although there’s no certainty, some buyers may be encouraged to seek finance before increases come into effect.

General sentiment

Overall, 2019 is going to bring about a lot of unique factors that will influence how confident people will feel about jumping into the market.

It’s important to keep in mind that every area is affected differently however, and while some suburbs may see prices go up, there are others that will see them fall. Keep an eye on them!

You should always chat to a local real estate expert to find out what is happening where you live and whether or not 2019 is a good time to buy, sell or both.