As the impact of Coronavirus/ Covid 19 begins to ease, confidence in the property market is increasing. It is proving to be a viable time to sell.
People are starting to realise that selling your property during Coronavirus/Covid 19 could be the perfect time to make a lifestyle change, which means buying a new home. This comes hot on the heels of many companies realising that their staff can work remotely, anywhere in Australia. This is causing a property boom in many regional areas.
But it can’t be all down to sea and tree changers.
So why is the real estate market bouncing back with a vengeance, and why is buyer confidence so high?
There are many reasons:
Interest rates are at an all-time low
The Reserve Bank has cut the cash rate to a record low of 0.1%. And many banks have already passed on the full rate cut to their home loan customers, including all four major banks – ANZ, Commonwealth Bank, NAB and Westpac. With the RBA promising to hold this cash rate until inflation is within the 2-3% target band, interest rates are expected to remain low for quite some time.
Government stimulus focused on boosting the economy
The government allocated some $189 billion to stimulate the economy, including supporting businesses to keep people employed and a $90 billion lifeline to banks to go out and lend money at a very cheap interest rate. This has eased pressure on existing mortgage payers but has also played its part in increasing buyer confidence.
People have more money to spend
People who typically spend a lot of money travelling overseas or enjoying entertainment experiences have had the opportunity to put a lot of money away. This gives them more buying power and has convinced some to take a step up in the property market or buy an investment property.
Unemployment levels are down
In July 2020, unemployment rates were sitting at about 7.5 per cent. There has been an almost two per cent drop in unemployment, so it is now closer to 5.6%. It follows that the more employed people, the more there are in a position to borrow money to buy property.
Demand is outstripping supply
It’s been a turbulent year. But buyer confidence is steadily increasing. So much so that more people want to buy houses than people want to sell homes.
This means sellers are in a powerful position. When demand outstrips supply, the value of properties will generally increase. Sellers are now in a place where they can sell for a far greater price than they could have at the beginning of the pandemic.
Australia has been one of the leaders in managing the pandemic
Yes, we’ve had our hiccups and outbreaks here and there. But in comparison to what’s happening internationally, Australia has kept the vast majority of the nation safe. Lockdowns tend to have been short, sharp and confined to small areas. We’ve had almost all restrictions lifted. The vaccine is being rolled out. All of this gives people hope and a positive mindset – the kind of mindset that allows them to buy with confidence.
The Australian economy has shown it can ride out the storm
While we’ve undoubtedly been through some uncertain times, we’ve steered our way through the crisis quite successfully. This is because, as RBA Governor Lowe stated, “Australia has a strong financial system which is well placed to provide the needed support to businesses and households. The system has strong capital and liquidity positions, and our financial systems have invested heavily in their resilience.”
First homebuyers back in business
Thanks to the new Australian government first home buyer scheme, increased financial support and all-time low-interest rates, there will be many first homebuyers still in a solid position to buy. If your property is suited to this target audience, you could have a strong incentive to sell.
The property market has been remarkably resilient
Australia’s property and housing markets have traditionally fared relatively well during economic shock. For example, Australian property prices actually inclined after the 1987 Black Monday share market crash because so many investors switched from shares to property.
And in fact, Australia’s property market was only affected by a relatively mild economic downturn in 2020. A downturn it is quickly rebounding from to the point where we are seeing record sales occur in a very short time on the market.
Resources for selling your home during Covid 19/ Coronavirus
So, should you sell your property during the Coronavirus? If you decide the answer is “yes,” our team has put together a series of articles and resources to help you.
- Coronavirus and important changes that affect homeowners
- How to manage open homes and private inspections during Covid 19
- 5 ways to adjust your property sales plan for Covid 19
Plus, more information to come as the real estate industry adapts to the new demands of business during this time.
What PropertyNow is doing to help
PropertyNow is committed to supporting you to successfully sell your house during coronavirus. Our team remains on hand to answer your questions and give you the vital assistance you need 7 days a week.
By selling privately through us, you’ll save expensive agent commissions while taking full advantage of remote restrictions during isolation. We’ve also put in place a few important incentives that will give you greater flexibility during this uncertain period:
- No time pressure to sell. Your listing will remain on all the major real estate websites until sold.
- Pause your listing at any time for free (for up to 12 months or without time limit for exceptional circumstances).
- Remote and safe. We have all the tools and systems in place to get your home in front of the right buyers in a 100% virtual capacity, if that’s what it comes down to.
- Pay with Zip Pay from as little as $10 and protect your cashflow if finances are tight.
- Draw support from our fully remote team 7 days a week.
- Allow buyers to book one on one inspections online