What’s really going on in the property market?
With all that’s been happening around the pandemic, the unknowns and the uncertainties that have arisen from this situation, it may be hard to determine what to do about buying and selling.
We are all aware that Australia is currently experiencing a rise in Coronavirus cases- Melbourne and Victoria being particularly hard hit, unemployment has risen, and we are officially in a recession, so is there is any good news?
Well, yes there is.
According to the chief economist of Realestate.com Nerida Conisbee, there are a number of positive trends currently happening in the property market.
At Stone, we have also seen a healthy growth in the number of sales per month, record prices still being achieved, more new listings than this time last year, and the vast majority of properties selling for more then their estimated pre-sale price in less than 30 days. Positive signs indeed!
If you are thinking of selling, purchasing your first home or an investment property, these may be just the questions you would like answered:
- Are there buyers for my property?
Yes, property buyers are still active.
The number of home buyer searches on realestate.com has continued to increase and is now up 72.5% from the lows experienced at the end of April.
At the same time, sellers are coming back into the market and with a higher level of consumer confidence recorded in June 2020, we are seeing more properties coming onto the market compared to the same time last year.
- What’s happening with property prices?
The good news is, house prices are not collapsing.
A stable banking sector, lots of government stimulus, a lack of properties to buy and a lack of alternative investments, are just some of the reasons why house prices are remaining steady in the current market.
In fact, for some property types such as those in premium suburbs, prices are still rising.
- Who’s buying?
First-home buyers remain active but investors have slowed down.
The strong first-home buyer demand as a result of government incentives, combined with the stimulus measures such as the federal government’s HomeBuilder scheme which excludes investors, has led to very strong demand for house and land projects.
Enquiry levels remained strong for first-home buyers in June, more than doubling in most capital cities.
- What about lockdown 2.0?
Property market conditions were particularly strong in June but the current surge in COVID-19 cases in Melbourne could break the city’s recovery says Conisbee.
For the rest of Australia, depending on how the other states manage their virus cases, it may actually be a positive as economic activity is driven northwards.
To discuss your property needs further, please contact a Stone office nearest you.
The door is open.