There’s no doubt that the coronavirus has gotten people worried (or even a little mad). There’s no toilet paper or canned food, and people are even scared to leave their house; a shared concern globally as the impact reaches different countries in varying degrees.
With no one certain of how long it will go on like this, we question how the virus is impacting the market (if at all).
Consistently, ever since the announcement of the virus, buyers attending our opens have been at an all time high, despite the local and international scare. Buyer groups upward of 20 walking through our open homes, well in excess of 10 enquiries per week per property, several registered bidders at auctions and clearance rates sitting above 80% consistently. The talk of the virus is definitely a topic of conversation with buyer’s we have met, although we find it’s no more than a practical discussion, with most people appearing as if they just want to continue about their day-to-day business.
So on the buyer front, not a lot has changed… but what about the seller front? We personally haven’t had any vendors pull out of selling in our core area. The market may be subtly changing due to such external factors, as it always does, but our clientele are adjusting well. In fact, we have actually found many sellers are keen to have their homes listed and sold prior to Easter, and as a result, listings in our local area have increased. With the usual slow-down around the Easter and Anzac Day holiday period, now combined with coronavirus, there are concerns of a potential decline in market activity, but based on our conversations with our sellers, the market may fall only slightly before re-balancing itself.
It was interesting to note, after talking with other agents in areas where the demographic increases in density and is more singular in population, it would seem some of their clientele have decided to hold off from selling their home. With fears of the virus spreading further, some sellers have mentioned that they don’t feel comfortable with groups of people coming through their properties, or they are just concerned that buyers will stop looking altogether, even though we have not seen this in our marketplace.
The recent decision by the RBA to drop the cash rate to 0.5% was designed to stimulate the economy in an attempt to drive consumer spending. Interest rates are also at an all-time low, making it very appealing for buyers looking to secure their next home. We’ll be watching closely to see if this and the coronavirus play a part in what is currently a very strong market.
Taking into account the market performance, our opinion is to make hay whilst the sun shines and take advantage of the best conditions we’ve seen in years. For sellers, the buyer attraction is definitely present in properties of various price ranges, with many displaying high levels of confidence. As for buyers, a steadily returning supply of property and low interest rates will see you find your new home.
If you’re thinking of making a move and are interested to know more about the current market conditions, please reach out.