MARKET CYCLES STEADILY ON

Widespread talk of a looming property market crash seems to have evaporated in recent weeks. In the wake of the Government’s ditching of the capital gains tax proposal and the Reserve Bank’s cut to the OCR, which has prompted even lower mortgage rates, public expectations have become more upbeat.

In fact, the question now being posed is could a market rebound be on the cards? Westpac chief economist Dominick Stephens is an exponent of this outlook. He says that Westpac economists now expect nationwide house price inflation to lift from 2% at present to 7% over 2020.

The cancellation of a capital gains tax combined with lower mortgage rates will be game