Yes, the property market is about to bottom, but…
Jun 06, 2020
Buyers return
Almost unbelievably (at least from a few months ago) Australia now has only two ICU cases remaining of COVID-19.
Even both the most populous states of Victoria and New South Wales recorded zero new confirmed cases today for the first time in months.
And all of a sudden, the property market is coming back to life, as folks realise with a genuine sense of relief that the world is not ending.
REA Group has recorded a record surge in demand from buyers with serious intent over the past few weeks:
And we’ve been suddenly hit with a raft of enquiries, too, following a very quiet few months where caution naturally abounded.
Market to rebound in H2
With mortgage rates so low and with so little quality stock on the market, it’s inevitable that the housing market will rebound in the second half of the year.
A few words of warning, though.
Stimulus packages can be hotbeds of opportunism, so you should think very carefully before rushing off to buy a new house-and-land package just because there’s a tempting government incentive in place to do so.
If you must buy new property – and for most buyers I don’t think they should – at least consider the Lindy Principle before doing so, and stick to proven and reputable developers.
And always remember that most new stock loses value after settlement.
Some sectors of the rental market will also remain soft over H2 2020, and this will persist for as long as travel to Australia remains restricted.
I discussed this a little further in the short video here
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