The Impact of Coronavirus on the Property Market: Everything You Need to Know
Essential reading if you're looking to buy or sell property, right now
Whether you had just started thinking about buying or selling or had been entrenched in the property process for months, there is no doubt the outbreak of coronavirus may have put a dent in your plans. But with real estate agencies still open for business around the country, what exactly is the impact on the property market by Coronavirus, and is now still a good time to buy or sell? We speak to the experts to find out.
The Biggest Impact on Australia’s Property Market
One of the most Googled questions since the coronavirus outbreak is ‘how will the coronavirus affect house prices?’. The bottom line is that the greatest impact has been seen in the decrease in stock.
Peter Hanscomb, CEO of Belle Property and Hockingstuart says, properties are still selling, but the real shift the real estate market is experiencing is how property is being bought and sold.
“As in all economic downturns, properties will and are continuing to be sold because of life’s needs and circumstances,” says Peter.
“We also have a major Government economic stimulus package which is certainly helping people to continue to pursue the goals they had for 2020, whether that be buying, selling or renting,” says Peter Hanscomb, CEO Belle Property and Hockingstuart.
Is it a buyer’s market?
“It’s definitely still a good time to buy and buyers should be keeping a long-term perspective,” says Peter.
“If you were in the market before the virus hit, you can’t really afford to drop off now. Once COVID-19 passes, the market will rebound. Smart buyers should be thinking about using this time to get into more desirable suburbs, upsize their homes or even downsize.”
What about home loans? Can I still get one?
“The banks are still lending and if you’re in a stable job with a stable income, there’s no reason why now the approval process would be any different from before,” says Peter.
“Another thing to consider is pre-approval status. If you were already in the market, with your pre-approval finance, it only has a short window before you are forced to reapply, so if the right property comes along, you need to buy based on affordability and desirability today, instead of missing out and having to start the whole process again.”
What about first home buyers? Is now a good time to act?
“People are naturally going to feel nervous about the property market, especially if they haven’t bought or sold property before, it’s to be expected. But there are also some potential winners out of the current market situation and one of those is first home buyers.
“First home buyer grants are still available across the states and the reality of the current market is that it could also give first home buyers a real opportunity to get their foot on the property ladder,” Peter explains.
What about selling? Is it still a good time?
“The real estate industry has adjusted quickly to allow people to continue to sell and buy safely, and we’re still seeing pretty impressive results across the board,” says Peter.
“Agents are able to undertake virtual appraisals and online auctions and some of the selling tools like virtual home tours and 3D imagery are truly incredible.
“I want people to know that if they want to sell or they need to sell a property, the real estate industry is completely capable of marketing their property and securing a phenomenal result.”
When is the market expected to bounce back?
The property market started strong in 2020, (with an interest rate cut and loosened lending criteria), prices had begun to soar. And according to the Reserve Bank of Australia (RBA) the market is expected to bounce back to this growth phase later this year.
“The most important thing to remember is that life will go back to normal whether that be towards the end of this year or at the beginning of next year, but in the meantime, don’t be spooked. If you want to buy or sell in 2020, the industry is still here to help and support you,” says Peter.
Now that you have learnt about the impact on the property market by Coronavirus, head over to our Property page to read up on everything you need to know!
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