The coronavirus pandemic may have changed the way real estate agents operate, but it certainly hasn’t done anything to dampen the market in Australia and the Diamond Valley is no exception. We are still seeing demand for properties in all categories which is unprecedented.
In times of global uncertainly, property is seen as a safe haven. The two biggest drivers of the residential property market have been low mortgage rates and credit growth. The state of the housing market has been a key barometer of economic health and is keenly watched by all levels of government and Treasury. Record low interest rates, government support and loan repayment holidays for distressed borrowers have helped to insulate the housing market. Home loan customers who are still struggling when deferral periods end over the next couple of months are being encouraged to shift to interest-only repayments, taking advantage of the lower official cash rate, which the Reserve Bank cut by 50 basis points in March in response to the crisis. The first phase of budget support since March was designed to keep struggling firms afloat and prop up household incomes when COVID-19 and health restrictions decimated the economy. The JobKeeper wage subsidies, doubling the JobSeeker unemployment benefit and cash flow injections for small business have proven to be effective in cushioning the economic damage, however unemployment, which is tipped to be 10 per cent by Christmas, is still a major concern of the central bank and Morrison government. We know there are dark clouds on the horizon which means now could be a good time for you to sell – so why wait?
With Spring on our doorstep, we are heading into peak selling season, when stock is likely to rise and create less competition for your house. There are many economists predicting property prices will decline over the next year or so. As mentioned earlier there are two basic fundamentals that drive property prices, supply and demand. Many suggest that supply will outweigh demand in the next six to 12 months and possibly longer, creating conditions less favourable for sellers. What many economists are saying that the next 12 months may hold:
All of this will result in the number of properties for sale increasing but there may be less buyers looking to purchase. So, if you’ve been thinking about going to market, then perhaps now is the right time.
If you are thinking about selling or even interested in finding out what your property might be worth, please send us a message or email us at email@example.com