How is Covid-19 affecting the property market?

https://youtu.be/lIuCp4Km95MI know you are probably wondering how the current Covid-19 pandemic is impacting the property market.There have been some forecasted house price drops in the media of between 20% – 30%. I am not seeing that in the current market. Some market commentators are predicting we will see the type of price drops we saw between 1990-1995.I feel they are wrong. I was selling property at that time and the market conditions including the lack of support available were very different back then.As Paul Keating said at the time it was the recession we had to have and we also had Interest Rates at around 17% at that time.The current Covid-19 pandemic is not the same as the recession back in 1990-1995 because back then people had no help or support.What we are experiencing now is not a recession as such but a response to a pandemic which we will get through in due course.What is happening in the property market in the current pandemic?Let’s look at the facts. Our government, our treasury and the Banks are all aligned with unprecented support. The Jobkeeper initiative has made a difference to the long term viability of Small Business. For many it this initiative has provided them with enough to survive and/or keep staff which they wouldn’t have been able to otherwise.Interest rates are now at an all time low with many Investors portfolios now cash flow neutral or better. Some are saying unemployment will rise however there will still be people who are in a cash flow positive position and choosing to invest in property and/or upgrade their family home.There is no doubt some property classes that will have some price corrections and longer days on the market. We are finding quality family homes in highly sought after locations are still having strong buyer demand.It is worth remembering past markets as we will get through this and as things start to get back to normal we will see a strong increase in listings and with it more buyers coming into the market.Prior to all this we had strong pent up demand for quality property and there is no doubt we will get back to that.Unfortunately at the moment I am seeing a lot of buyers who are like a deer in a spotlight not knowing what to do. This is dangerous because the market is likely to recover quickly and therefore they are likely to miss out on opportunities that could provide them with substantial capital growth in the future.In comparison, real estate savvy buyers are strategically thinking and getting independent expert advice in order to identify and secure A grade properties moving forward which will provide them with maximum capital growth over the medium to long term. Quality property is in short supply so for those in the position to buy, there is opportunity.Property is a long term investment and always remember when you are purchasing the right property it is time in the market that counts.If you have any further questions you would like answered about what a Buyer’s Agent does please feel free to email us at paul@murphyjacobs.com.au.You are also welcome to book a 45 minute obligation free initial discovery consultation where you can ask us the above questions and find out how we can be your advocate and help you secure the right property!