Would You Buy A House In Sydney During COVID-19?
- Parents Only
Our lives are very different now than they were a few short months ago and most of our best-laid plans have sidelined by Coronavirus, including buying property. It is stressful at the best of times, so its no surprise confidence wanes during a global crisis.
COVID-19 doesn’t discriminate and sweeping social-distancing restrictions enforced by the government hit almost every industry. The Real Estate sector was impacted by the banning of auctions and open for inspections, which forced it to adapt to a virtual marketplace, and the effect of the pandemic on property prices is one of Google's hottest searches.
If you are in the market for a property, you can still join the hunt, with a one-on-one private inspection or by viewing properties virtually with online video tours that can be viewed anywhere.
Digital auctions have been facilitated by online bidding services and telephone bidding, and agents are assisting the process more than ever before, bridging information and communication gap between all parties.
Image via smalldesignideas
However, despite the innovations, the property market will be impacted more by economics than logistics and, according to financial comparison site Canstar, the impact will be negative.
Interest rate cuts and stimulus packages, normally great news for the housing market, have been negated by the loss of income and extreme uncertainty. Potential buyers are retreating from the market, reducing competition, stalling momentum and impacting growth, so property prices are set to go down.
The pool of people that can take advantage of the savings has also reduced, and homeowners may be forced to sell a property due to job loss, rising debt and the economic downturn, which could see a glut of supply in the market, with limited demand.
Economists have predicted house prices will fall by 10% in the short term, but a recession could lead to a 20% drop if the crisis lasts longer than six months.
According to Property Economist Dr Diaswati Mardiasmo, it is the best time to buy for those who are ready, and those in very secure employment, or who have already sold their home and have cash to burn, could snag a bargain!
Speculation is rife, but how the housing market trend continues is contingent on how long the COVID-19 crisis lasts. It is anyone's guess, but the 2021 forecast is optimistic.
“With the assumption that the virus is contained and commercial activity is back on track, we will see a surge in consumer confidence.” Dr Mardiasmo said. The property market will indeed recover but when, only time will tell.
More COVID-19 News
Have you signed up to our newsletter? Join ellaslist to get the best family and kid-friendly events, venues, classes and things to do NEAR YOU!