What Property Experts Are Saying About COVID-19

Is it all doom and gloom for the property market? Many experts don’t think so. Here are some reasons to maintain hope, even in the midst of the global pandemic.

The situation is temporary.

Even though the impact of the virus and the resulting regulations have been felt in every corner of the globe, we do know that there will be a time in the future that Covid-19 will be under control. There’s no way of knowing exactly when, but we can expect things to return back to more-or-less normal at some point.

Realestate.com.au chief economist Nerida Conisbee agrees. “This is a short-term health crisis and it’s likely that with all the stimulus in the market, the economy will roar back into strong economic growth once the pandemic abates,” she said. It might feel like a long time while we’re in it, but there will be an end to the current situation.

New ways to carry on

It’s not just real estate – every sector is having to find new ways of doing things to keep up with existing conditions. The real estate market has brought out some exciting innovations that have meant they can keep powering forward, even with the current restrictions.

Sales are still going ahead, with the format slightly changed to fit in with the required social distancing measures. Real estate agents are able to rely on modern technology like virtual tours and online communication to provide the same experience, but keep person-to-person contact to a minimum.

In fact, these methods offer some real advantages, such as viewers being able to take their time in the comfort of their own home, having an in-depth look without having to adhere to a schedule.

Sales haven’t stopped.

It can’t be denied that we live in a time of uncertainty, but that hasn’t stopped the market cold. In Melbourne, a recent auction saw an unliveable house in Thornbury sell for $130,000 more than its reserve price. Not all properties will see the same results, but it’s encouraging to know the market is still pushing through.

There is also increased interest from outside the country after the coronavirus scare, with many buyers from overseas viewing Australia as a safer option for their families. The Australian property market will eventually stablise without outside help, but for now it provides even more options for sellers.

The market will support buyers.

It’s not necessarily the most obvious outcome, but the coronavirus outbreak could end up keeping borrowing costs very low, which will help keep people interested in making property purchases. Other events have given markets a shock and slowed down the upward trend of house prices, but for those looking to buy it means owning a home became more accessible.

The government has also supported this with the general stimulus package, meaning that most Australians will keep their job or at least continue to see a reasonable income. That will minimise the risk to home-owners, and keep those looking to buy on track with their savings goals.

The reserve bank cut its rates just after the coronavirus situation became apparent. That is good news for the property market, as it will generally help it to either stabilise or rise over time. It might take until 2021, but experts expect the market to rebound.

Keeping up hopes

The real estate market will see effects from this global pandemic, as will every other market to varying degrees. However, it’s not all bad news, and it’s not forever.

Buyers can take advantage of low borrowing costs and a potential short-term fall in house prices to purchase a new property. Home-owners can take advantage of the government concessions and other support, such as freezing mortgage payments in the case of financial hardship, to continue their mortgage payments as usual.

For those who hoped to sell in the near future, it might not be the right time to get premium prices – although the market has shown that isn’t always the case. If home-owners can hold on, the market shows every sign of eventually bouncing back once all the fallout from the pandemic has settled.

While the coronavirus situation is serious and has shaken the world as a whole, there’s no need for despair. Buying and selling is still on the table, with a few modern touches to keep the show on the road. And if Australians can battle on and utilise the many avenues to get through these difficult times, in time we’ll see the market as a whole return to a stabilised normality.

We just have to have hope, be creative, and hold on.