Will the market drop by 30 per cent as reported?
We would love a crystal ball that could provide us with that answer. If anyone knows where we can get one from please let us know!
Last week it was reported that the CBA forecasts housing prices could fall by up to 30% in the wake of the Coronavirus pandemic, with Westpac forecasting a 20% fall and other lenders a 10% fall. What the headlines vastly failed to mention that these were ‘worst case scenario’ predictions with several contributing factors. With these predictions primarily focusing on Sydney and Melbourne as a whole, we always suggest focusing on our local market and not to get caught up in ‘click bait’ headlines.
As the past few months have shown us, these predictions and forecasts can rapidly change on a daily, weekly and monthly basis. With a constantly changing environment, it is very difficult to forecast how the economy will move forward and indeed the property market.
With many industries (such as hospitality and fitness) being hit hard with restrictions from day one, our industry was able to successfully pivot our practices and remain buoyant thus far. With the introduction of inspections and auctions last week, we have the ability to continue to safely facilitate property sales and lettings.
Whilst the local property market has shown strong resilience over the past few months, we would be ignorant to assume our market will not be impacted at all. As forecasted, some suburbs in Melbourne may see a fall of 30%, especially those areas that rely on international students and short-term rentals. With just about everyone being impacted by recent events, locally we would expect to see up to a 10% reduction over the coming months, it could be more, it could be less only time will tell!
So, is now the time to make a move? As always, we suggest the best time is when you are ready, despite any external factors. It is important to remember that when both selling and purchasing in the same market you may achieve less for your property but will also spend less on your next property making such predictions all relative.
Our company has been serving our community and local market for 62 years. So, if you are thinking of selling or purchasing or have any questions about the market, we would love to assist you.
By Emma Jackson - 21-May-2020
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