Property Market update:
The property market continues on!
There's no denying that the last few weeks have given us all time to pause and reflect on the changing landscape of our country in response to the COVID 19 epidemic.
For many of us, this pandemic has reshaped our society and transformed the very nature of our daily lives in ways we never saw coming.
This is no different in the Property Market. While the market is still operating, the way properties are sold, inspections are held, property management is conducted, has all changed considerably. In our tip of the month, we explain in a bit more detail what these changes mean and what you can do if you are still in the market to buy property.
For those who own property and are wondering how this will impact them, it is important to reflect on the long term attraction of property, and how this investment class has performed historically to ride out many disasters and emerge even stronger. I expect this will be no different and while there are many unknowns with the economic impacts of the virus, everyone needs a roof over their head, which will always underpin the market.
In the short term, we are yet to experience any significant downturn and we have come off a strong base, with strong growth over the last 12 months with Melbourne house prices rising 12.5% (corelogic). In fact, March 2020 has also shown an increase in values for the key markets of Melbourne and Sydney. I would expect this to slow down over April; however, there is still enough demand to absorb the current stock levels. This is expected to thin dramatically as will the supply, as the only people likely to sell at this time will be forced sellers. This group may only be small as the unprecedented stimulus packages and leniency from lenders for distressed borrowers are designed to keep business and people afloat, which is likely to significantly slow down the market and could even grind it to a halt. At the moment, we are still see listings that were likely underway before a number of the current restrictions came into play.
Having said that, there will be some short-term opportunities over the coming months particularly for those that have secure employment, cash, access to credit, and are ready to buy as we expect there will be some distressed sales.
If you are in the market and trying to navigate this new playing field give us a call.
While our office is closed, all of our staff are operating effectively from home and are available to assist you.
Keep safe at this time.
Leigh McConnon
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