Most minds seem to be on the housing market as people are waiting to see how the economy will perform in September after help such as JobKeeper and JobSeeker are due to finish. With the lenders also expanding holiday repayment periods for customers for home loans, it’s obvious that the industry needs to do all it can to continue cushioning the COVID-19 pandemic economic hit. In this section, we ‘re looking at how Australia’s real estate market has behaved since constraints and preventive measures were placed in effect in March for COVID-19.
Luckily, so far declines in property prices have been mild across the nation. But market performance, as always, will depend on how the economy will perform later this year. Trading volumes were higher June, according to CoreLogic, but median house prices were down. Perth and Melbourne had the greatest price declines.
In June, the national index dropped 0.7 per cent. Property prices in Perth and Melbourne dropped 1.1 per cent. The declines in Sydney, Brisbane and Adelaide were not as dramatic, with median house prices falling by 0.8%, 0.4% and 0.2%, respectively. By comparison, in June, Hobart, Canberra and Darwin each reported small rises in their median home prices.
Rental rates for houses across the rental market have dropped by 0.2 per cent since March, and median rent for apartments has decreased by 1.8 per cent.
To date , numerous government stimulus initiatives, low interest rates and home loan repayment holidays offered by lenders have boosted the housing market. However, at some stage these steps and strategies will stop, and that is when we get a better image of how the economy will work.
Conceivably, more economic hardship could occur on the landscape, particularly with scenarios such as the recent bout of COVID-19 in Victoria, causing Metro Melbourne to return to the restrictions on lockdown in stage 3. All these factors plus the pace at which the economy is improving on the other side of COVID-19 would have a part to play in the long-term success of Australia’s property market.
Some of the initial 30% plus decreases in property prices appear far-fetched, designed to draw attention and catch headlines. But this does not mean that, in the end of 2020, we will not see more falling prices. However, the responses from government and industry to date indicate that steps will be put in place to handle the property market where necessary. The question is whether such steps at the time would be appropriate for the economic climate.
Note this article is not a financial or legal advice. Please check with your financial and legal specialist counsel before making any decisions on your own.
For further information about real estate in this area, contact No Bull Real Estate, your most reliable and friendly real estate agents in Newcastle and Lake Macquarie. Buying, selling, leasing for residential, commercial, industrial property, contact your local expert to buy, sell or lease today on 49552624 or https://www.nobullrealestate.com.au