While the pandemic has altered the way we buy and sell property, it hasn’t put a stop to it altogether. But is it a bad time to sell? Ann Paterson provides some advice.
How many people are still house hunting?
Buyer activity has certainly slowed down over the past two months, with fewer sales transactions overall. However, we did see an immediate change in buyer confidence following the return of opens and on-site auctions this month, with Sydney recording its highest auction clearance rate since mid-March at 70% on the first Saturday that the ban was lifted.
How quickly does the housing market react to a crisis?
In short, it reacts very slowly, which is one of the benefits of property over shares for investment. The share market has been hit hard but this doesn't mean property prices will follow suit. In fact, Australian real estate has typically fared very well during past economic shocks.
Official data from CoreLogic showed Sydney home values actually increased in April by 0.4%, which was a surprising result that really demonstrates the resilience of Australia's largest market.
Locally, the main impact of Covid-19 has been a decline in sales transactions.
Will house prices drop due to Coronavirus?
It is likely that house prices will soften due to the pandemic but right now, a lack of stock for sale and record low-interest rates are keeping local prices stable. Everyone understands that Covid-19 is a short-term event that will pass eventually. The Eastern Suburbs property market is well-positioned to weather the storm because our area is among Sydney's most popular and desirable regions.
What COVID-19 restrictions do you need to consider?
Ann Paterson will limit the number of people allowed inside your property during opens. We'll offer all buyers hand sanitiser and ask them to refrain from touching surfaces and opening cupboard doors. We recommend you give hard surfaces a good wipe down after inspections, just to be safe.
Depending on the location of your property and the demand in your specific suburb, selling during the Covid-19 pandemic might work well for you, especially if you are selling to upgrade. To find out how, please call Ann Paterson today.