With the COVID-19 lockdown being gradually lifted over the next few weeks, it might be timely, if you hadn't, to start planning your next move in real estate. Are you buying your first home? Your next property? Or starting your next property project?
Savvy investors have not stopped planning, researching and scanning the market for the next deal, throughout the entire lockdown. And we have helped a few pick up good deals, in the past couple of weeks. If you are keen to get your property, you should be researching as well. But if you are a low-baller hoping to catch a good deal, this article is NOT for you. Keep waiting. As we've forecasted 2 months ago, prices aren't going to drop significantly. And this forecast IS still holding true.
So, what's going to happen in the Melbourne property market when the lockdown is gradually lifted in the coming weeks?
First off, we believe property inspections will resume within a month (if not immediately) of lifting the lockdown. But there could be restrictions on the number of attendees per session. Property auctions have already been moved online, but the response has been quite muted, as expected. So, it will be only a matter of time, before on-site auctions resume.
What about the outlook for Melbourne property prices?
As we've anticipated, prices have not fallen. Yes, the demand is low, but this simply means, there isn't as much competition for buyers who are in the market. Days of people overpaying by tens and hundreds of thousand dollars are gone, for now. But this will return once buyers start coming back into the market.
What have been holding prices up?
1. As much as doom sayers would want you to believe about the lockdown, 70-75% of the the working population ARE still employed. They are just working from home.
2. Unlike previous downturns, banks are giving affected property owners a break in mortgage repayments.
3. Government is injecting money into the economy and property market, by way of low interest rates, and supporting people who are affected. They have introduced the Coronavirus supplement for jobseekers and Jobkeeper payments to help affected businesses.
4. The low Australian Dollar, is attracting foreign buyers. And, they have been actively buying in the Melbourne property market in the past 2 months, when the Australian dollar fell by almost 20%. This meant property prices are 20% cheaper to them.
What's your next move? Still waiting? What do you need to do to start planning?
Refer to our get started guide here.
Have a chat with us. We can help speed up your property search. Jump in before followers gets in.
It is important that you get in before everyone else does, if you want to avoid overpaying. And you do not have much time to wait. You would have seen how people are overpaying by $200,000 just to get the property they wanted.
You've missed last year's pre elections buying opportunity. Do you want to miss it again?