Property inspections going virtual?
Times and approaches are set to change in the real estate industryREAD MORE
With the country looking to slowly open up once again and try to reach normalcy, one industry that has stayed resilient in these difficult times is the property sales market. With a lesser selection of properties available, competition has meant that buying a property has had that added touch of difficulty to it.
Though the necessary restrictions introduced by state and federal governments helped combat the spread of the virus, which widely effected many industries, the property market continued to operate. Albeit with safety and health of all persons involved the priority changes had to be made to operations.
These restrictions certainly placed a strain on how to sell and buy property. But with changes on the horizon, what can we expect in these times on uncertainty?
In Victoria, for example, up to 20 people will be allowed at auctions and open-for-inspections from June 1, as restrictions are eased across the state.
The restrictions, introduced to stop the spread of COVID-19 in March, banned public auctions and open homes, with agents limited to one-on-one private inspections.
Previous easing had led to 10 people being allowed.
Investors in this market may have more leverage and greater options, but they should be wary not to buy cheap for the sake of buying.
Listings could potentially be on the rise as COVID-19 restrictions ease meaning a good selection of property may be available.
Just because there is a property selling cheaply, doesn’t make it an automatic good purchase. A property in a poor location with little or no capital growth isn’t a bargain just because it is cheap. If something is too good to be true, then odds are there may be something fishy going on.
As always, due diligence is the key to making an informed purchase.
In times like this, extra research and caution can be a beneficial approach when looking to buy an investment property.
Before the crisis was a good time for entering the market thanks to the federal government’s first-home loan deposit scheme.
But given young people have seemingly been some of the hardest hit by shutdowns, with many employed in sectors such as hospitality, retail and entertainment, the market suddenly became quite hostile for these potential buyers.
Now though, with economic conditions seemingly becoming friendlier, there may be opportunities to find an opening in the market.
For example, first-home buyers could get into the market through buying property from sellers willing to lower their prices due to possible unfriendly market conditions or a need to offload the property.
The volatile the nature stock market means losing a big chunk of its value within days is a possibility. COVID-19 did some damage to the stock market. Property, however, will rarely see the swift drops of value that can be seen in the share market.
When you have invested in property, whether as an owner-occupier or as an investment, the low volatility is an advantage. In a situation such as the COVID-19 pandemic, the non-liquid nature of owning residential property can serve an owner greatly.
While the property market might see some loss, it has shown that recovery and building capital gains happens in the long term and therefore may not cause as much panic for an owner or those wanting to sell.
Housing prices traditionally can take longer to reflect economic conditions.
As we currently are experiencing an economic rough period, there is a chance that this will be reflected in the June and September quarters of 2020.
According to Pursuit, property prices across Australian capital cities could fall by 4.4 per cent over the June quarter and by another 2.3 per cent in the September quarter of 2020.
Sydney prices could fall by 4 per cent in the June quarter and about 2.5 per cent in the September quarter.
Dips in the prices of Brisbane and Adelaide may not be as bad but in Melbourne and Perth, it is predicted that falls of around 5.5 per cent and 2.5 per cent in the June and September quarters, respectively, could occur.
While there is never an easy fix for situations like this, policies that support housing markets, like low interest rates, mortgage relief and support for first home buyers, may be very important role stopping the negative effects on Australian homeowners that the COVID-19 pandemic has caused.
To know whether the market is truly back though, you can speak to a sales expert at Little Real Estate.
Our team has the knowledge and experience to give you the best possible property journey, whether you’re a seller looking for the best return or a buyer looking for perfect property for your needs. Contact our sales team today to see what they can do for you.
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