The upcoming election will potentially be a catalyst for vendors to release stock and ease the housing undersupply, according to Laing+Simmons.
Laing+Simmons general manager Leanne Pilkington said while the decision to leave rates on hold yesterday came as little surprise given the pending election, the market hopes vendors will have the confidence to release stock after an election result is confirmed.
"Stock levels in most suburban markets remain extremely tight and it's well known that most people defer making major decisions like placing a property on the market until after an election is decided," Ms Pilkington said.
"Regardless of the outcome, whoever is in government will be charged with the responsibility of supporting the housing market as a key economic driver down the supply chain and as a significant source of government revenue.”
Much relies on an uplift in activity over spring, Ms Pilkington said, which depends on vendors having the confidence to test their properties on the market.
"From the buyer side of the equation, demand remains robust. Investors are increasingly competing with owner occupiers for available stock, and sales of new developments are strong," she said.