How the election will impact the market - John McGrath

Market activity is likely to be subdued for the next few weeks due to the school holidays, the Anzac Day long weekend, and the Federal Election on Saturday, May 3.

The biggest impact that the election will have on the market is that sellers may delay the start of their campaigns, and many will prefer not to schedule their auction on the day.

People tend to adopt a ‘wait and see’ attitude around elections because there’s uncertainty as to which side of politics will form the next government. This election will be a very tight race, so that sense of uncertainty is heightened. It’s human nature to use uncertainty to justify procrastination.

But in my opinion, the election date won’t make a difference to your sale.

If buyers are interested in your property, they’ll prioritise attending your open or auction on the day. It only takes 20 minutes to vote and your buyers have got all day to do that.

However, If you’re selling a family home, then it is usually best to avoid a major school holiday period. That makes more sense to me than avoiding an election day.

Given the election directly follows the school holidays this year, I expect many sellers will choose to avoid those three or four weeks altogether just for scheduling convenience.

For sellers who are already on the market with an auction scheduled for May 3, just remember that auction dates are not set in stone. They merely provide a timeframe to motivate buyers to act.

If you’re uncomfortable about auctioning on election day, your agent can bring the auction forward a few days or push it back a week.

As for buyers this could present a great opportunity for you. The school holidays and the election aren’t going to deter motivated purchasers who are out there in the market now and ready to buy a home. Some uncommitted buyers may take a ‘wait and see approach’, but it’s mostly unnecessary.

The exception is if any policy proposals affect you. For example, the Coalition has pledged to allow first home buyers to access up to $50,000 or a maximum of 40% of their superannuation to buy.

That could make a significant difference to a first home buyer’s purchasing power, so some people may pause their search to ‘wait and see’ whether the Coalition wins.

Other housing policy proposals include an expansion of Labor’s shared equity Help to Buy scheme, which was finally legislated in November, with a start date yet to be announced.

The proposed expansion raises the eligibility caps on income to $100,000 for singles and $160,000 for couples and single parents.

Property price caps have also been increased, with Sydney’s limit at $1.3 million, Brisbane and Canberra at $1 million, and Melbourne at $950,000.

If you’re thinking of selling but want to avoid the school holidays and election day, don’t delay. Choosing an agent, planning the campaign and preparing your home for sale can take a few weeks.

So, use the time coming up to get your campaign ready to go by the second week of May.