It’s extraordinary that in just a few short weeks terms like ‘social distancing’ and ‘self-isolation’ have become part of our everyday language.
It’s equally amazing that as recently as early March, property values were rapidly climbing and auction clearance rates were strong1.
That was then. What about now?
Clearly, we are in a very fluid environment. Government restrictions – and stimulus initiatives – are changing daily, and no one knows for sure how this will all pan out before life returns to normal.
With this in mind, here’s how the property market is faring at present.
Buyer demand is weaker
CoreLogic research2 shows that close to one in three real estate professionals nationally, say buyer enquiries either held steady or rose in late March. However, 33.9% of respondents have seen a decline in buyer enquiries of more than 50.0%.
What this can mean for you
It’s understandable that many Australians are concerned about their job security at this time. But if you’re in a position to buy, fewer buyers means less competition, and that can spell more negotiating clout.
If you’re ready to buy and do not foresee any material changes to your income, today’s historically low rates may work to your advantage.
If you are Buying or selling : What does it mean for you ?
Reduced buyer activity doesn’t necessarily equate to house price falls. CoreLogic has previously noted that vendors may not reduce property asking prices. Some may hold out until the Covid-19 crisis has passed – as it will.
If you can afford to take your time to sell, it may not be necessary to shelve plans to upgrade. Again, incredibly low home loan interest rates can lend support to the market.
Social distancing puts focus on private treaty sales
Public auctions in the traditional form now out of the question with agent’s being forced to online auctions, and according to CoreLogic this is likely to see properties withdrawn from auction and put to sale via private treaty.
That’s not necessarily a bad thing. It can mean more opportunities for buyers and vendors to negotiate without the pressure cooker environment of an auction.
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