The Melbourne property market has come to a grinding halt as selling agents are unable to take buyers through any of their properties they are trying to sell. Additionally, in recent weeks a large number of online auctions have also been cancelled due to the Stage 4 lock-down restrictions currently imposed in Melbourne. Unfortunately, as a result of these lock-down measures the entire Melbourne real estate industry is effectively closed until the Victorian Government starts easing these Stage 4 restrictions.
Presently we are at the halfway mark with some good news indicating the amount of daily Covid-19 infections has dramatically declined over the past week. This implies that Melburnians are potentially on track for easing of restrictions in a few weeks’ time.
Over this quiet time, many of the selling agents in Melbourne are working to try and list as many properties for sale as they can for the upcoming ‘spring selling season’ which is less than a week away. Feedback from many selling agents is that whilst they are successfully listing properties for sale there still is a massive shortage of properties currently available on the market. Selling agents of course are urging potential sellers list their property on the market today and take full advantage of this opportunity.
In part, selling agents actually do have a plausible argument in suggesting it is a good time to sell, based mainly on supply and demand factors – when there is usually low supply that can cause prices to increase as demand outstrips supply. However, during these unprecedented economic times it remains to be seen given Australia’s unemployment rate is rising – unfortunately every day more and more people are losing their jobs. Typically, when Australia has experienced high levels of unemployment in past recessions house prices have fallen not risen and often take many months to sell. Therefore, we believe it is much more prudent to take a more cautious ‘wait and see approach’ in terms of commenting about what the future holds for property. The bottom-line is that anyone contemplating purchasing a property either today or in the near future should always play the ‘long game’ with intent of long-term capital growth, regardless whether it is bought for investment purposes or as a home purchase.
Finally, Your Australian Property is still experiencing a reasonable amount of enquiries from buyers who are looking to purchase, and considerably higher than the amount we expected. These include buyers who still have not yet purchased (who were looking to buy PRE-lock-down) and new buyers looking to enter the property market. Interestingly, just prior to lock-down, our previous 5 transactions since the start of July have been for 3 investors and 2 home buyers.
Stay covid-19 safe and our fingers are crossed that these Stage 4 lock-down restrictions will be eased very soon 😊
Your Australian Property lives and breathes property and knows the Melbourne Property Market! We at Your Australian Property offer comprehensive end-to-end support from identifying and analysing your selected properties to dealing with selling agents, attending property inspections, purchase negotiations and / or auction bidding on your behalf. Our Independent Buyer’s Agents in Melbourne, will take the time to understand your situation and work out what your individual needs, specific requirements and property goals are, so we can begin searching for your next property. To get in touch with us today, please complete our Enquiry Form so we can discuss your objectives and outline our process in clear and simple terms.