Now that Australia is in the middle of the COVID-19 pandemic, you might be wondering how is the property market is holding up. Surprisingly, it’s not too bad. This is contrary to the initial forecast. The property market remained resilient and national home prices even rose by 0.3 percent countrywide per the Hedonic Home Value Index by CoreLogic.
Does this mean that buying or selling a property during COVID-19 is a good idea? Let’s take a closer look at the property market in Australia and how it has changed since the spread of coronavirus.
How is the property market affected by COVID-19?
Although property prices have risen during the last month, transactions have significantly dropped. This is largely due to social distancing and quarantine rules. The most affected are markets near tourism areas. Businesses have been low as well for blue-collar suburbs where people can’t work and unemployment is probable.
Property prices are also likely to drop eventually. The job loss or reduced working hours means low income for home buyers. This will force them to delay buying properties. They will avoid taking out home loans until they have the confidence to make repayments. Fewer auctions are also expected and the economy will hit its lowest point this year.
But this is just a short-term effect and things are expected to pick up once restrictions are lifted. Also, real estate agents are making the most of their available resources to continue doing business. Virtual property tours using FaceTime or Zoom are a thing now and widely used by sellers in Australia. Many are live streaming properties on sale to attract potential buyers.
Is it a good time to buy a house?
If your livelihood is not at all affected by the coronavirus pandemic or you have savings, you can take advantage of the cheaper properties. That is if you’re comfortable having virtual tours instead of inspecting the property in person.
The pandemic aside, it’s always important to get a pre-purchase building inspection done before buying. The inspection is a visual appraisal of the condition of a property identifying existing defects or areas of concern. However, it is not a warranty against future defects.
If you are looking to buy, not only will you benefit in lower prices but also in the low-interest rates that most lenders are handing out due to lack of business. Of course, a low-interest rate means low monthly repayments. So, buying a house during COVID-19 will give you savings in the long term.
Aside from the monetary part, you could benefit from the amount of downtime you have during this pandemic. You have a lot of time to search for the right property and the best home finance product. Since there aren’t many people looking to purchase at the moment, you won’t have any competition either. This will enable you to find your dream home easier. If you buy a house during this period, you’ll have more bargaining power because sellers are keen to get your business.
View further information about building inspections.
Should you sell a property now?
You should think twice about selling when home prices are down, especially if you’re property is located in the areas most affected. But if your home is in one of the regional markets not dependent on tourism or hospitality businesses, then you don’t have to worry much. You can also go ahead and sell a property in middle-ring suburbs. That’s because these properties have a higher likelihood to hold their values during the pandemic.
Make sure to use the available online resources most effective in selling properties when social distancing. More importantly, learn how to do virtual property tours well as this can make or break your property sale.
Building and Pest Inspections with Inspect My Home
Whether you’re buying or selling a property during COVID-19 and no matter how the market is doing at this time, remember that having a building and pest inspection is very important. It will ensure that the property is structurally sound, in great condition, and pest and termite-free. Inspect My Home can help you with that.
We provide building and pest inspections in Queensland, NSW, and Western Australia. Our team of professional inspectors are still conducting inspections during the crisis and respecting all social distancing requirements. We’re fully licensed, insured, and independent of any third party.