This week I have the amazing Kelly Pack from Mark Ward Properties as a guest blog to share with us how the Corona Virus is affecting the property market…
Hold onto your hats – the market is taking off again! – Is what I would have said had the Corona virus not stopped everything in its tracks recently. We were seeing so many buyers at our open homes, and properties were starting to fly out the door within the first week or two after listing, and then receiving multiple offers. Properties were selling for $10,000’s over asking prices, as buyers got into bidding wars to secure something in the area. Now that we have restrictions on open homes and auctions, things are changing and only time will tell what will happen in the Real Estate industry.
SAFETY MEASURES
We have put safety measures in place and we’re still conducting private inspections and appraisals, so if you’re thinking of selling, but aren’t sure if this is still a good market or not, let me assure you that there are buyers out there wanting to take advantage of low interest rates and house prices are still increasing – slowly.
The Government has currently put a stop to open homes and auctions (online auctions are still going ahead though) and Real Estate Agents are now only doing private inspections at properties. Here at Mark Ward Property we are taking precautions like only showing one family at a time through properties because of social distancing and we are asking people not to touch anything as they inspect homes. We are also conscious of tenants or owners who are sick and not showing people through their homes during this time.
WHAT’S TRENDING
People are still buying and selling homes.
We are still starting to see an increase in house prices. There are more buyers out and about, taking advantage of the low interest rates, which is creating competition in the market. This is great for sellers because buyers are offering more money for homes, to compete with other buyers, to secure a property in the area that they want to live in.
Some sellers are holding off because they’re scared that there won’t be as many buyers out and about, however I can assure you that buyers are still wanting to purchase properties because of the low interest rates. Leases are still ending and renters are still wanting to secure a property of their own and get onto the property ladder. Homes are still selling and sellers are wanting to purchase a new property to move their families into.
We have a lot of people on our database who are missing out on properties because they are getting outbid on homes. Majority of buyers are looking for 3-4 bedroom homes in Tarragindi, Moorooka, Salisbury, Nathan and Coopers Plains and are willing to pay premium prices while interest rates are so low.
We’ve also been seeing more investors out and about as they come up from Sydney and Melbourne, because prices down South are still at an all time high. If you’re thinking of selling, please get in touch with me to see if your property suits the criteria of what buyers are looking for.
HOUSES
Houses are still the hot commodity they always were. Most people will opt to purchase a house over a townhouse or apartment because they don’t want the cost of high body corporate fees. People are still wanting a yard for kids to play in as well.
If priced right, houses will continue to always be more popular with buyers, because they increase in value at a quicker and higher rate than townhouses and units.
(If you would like a valuation of your home, please click the image below.)
TOWNHOUSES AND UNITS
Townhouses are still more popular than units, and families who can’t afford to purchase a house in the area they’d like to live in, are leaning towards double storey townhouses with courtyards rather than single level units. That being said, the right apartment can achieve a good rental income if tenanted and your rental yield is right. Apartments close to the city tend to bring in great incomes for landlords.
LAND
There is still high demand for land from people wanting to build rather than buy new or renovate, however land is becoming more scarce nowadays. There are still the odd 809m2 blocks out there, and these are slowly being split and developed.
RENTAL PROPERTIES
Rental properties will be affected the most during this time of uncertainty, as renters who are getting made redundant or losing working hours are struggling to pay their rent and in some cases are even asking landlords for rental reductions. This doesn’t help owners because they still have to pay their mortgages. Yes banks are offering ‘mortgage holidays’, but this isn’t as attractive as it seems.
Banks are offering people a temporary period of time to pause mortgage repayments, which is helpful if borrowers don’t have incomes because of lost hours or redundancies, however the interest that is being deferred still has to be paid back to the banks, which could cause more stress in future when it comes time to repay the interest charges plus the deferred repayments.
WHAT’S NEXT?
I would love to look into my crystal ball and tell you what is coming next, but because of uncertain times and new measures being put into place by the Government every day, I can’t predict what will come next. Sorry. I wish I could. What i can do though, is keep you informed on what is currently happening in the marketplace, and what buyers are looking for, and how much your property is worth in the current market.
If you want to find out more about Kelly you can here, https://www.realestatetarragindi.com/ or you can contact her 0414 520 853 or email at: kelly@markwardproperty.com.au