Given what is happening in the world right now as a result of COVID-19, it is easy to get confused as to what to do in terms of property.
A common thing I hear from buyers is – should I buy now or buy later?
In terms of the latter, many buyers are basing their decisions off predictions at the start of the pandemic and not what the pundits are thinking is going to happen currently.
More than ever, the future is uncertain with ever changing economic and political events, on a daily basis. We are all aware of ‘the elephant in the room’ – COVID 19 which has undoubtedly changed businesses as well as social behaviour forever.
I believe that it is, therefore of special interest, to take a look at banking economic forecasting, given that they have so much invested in residential real estate.
According to an article by Ted Tabet, Urban Developer, Sept 17, 2020:
“Westpac is the latest bank to upgrade its short-term home price targets, citing record low interest rates, ongoing regulator support and a steadying economy for its more positive outlook.
The bank says residential property prices are now expected to experience a 5 per cent correction through to late 2021 before a 15 per cent surge over the following two years…
While the bank still believes national prices will continue to ease, its economists have substantially revised their outlook.
Westpac chief economist Bill Evans and senior economist Matthew Hassan now forecast prices will fall 12 per cent in Melbourne, 5 per cent in Sydney and 2 per cent in Brisbane over that time…
At present, Corelogic indices show that six months after the March shock, house prices are gradually stabilising or starting to slowly climb again in Sydney, Canberra, Adelaide, Brisbane and Perth.
Economists said the correction would occur over four distinct stages, with the first—the initial impact on prices from the collapse in economic activity in the June quarter—largely passed.
“The second stage, which will cover the December and March quarters, will be a period of relatively stable prices, possibly with some modest increases…”
“The third stage will see some limited resumption of downward pressure on prices through 2021, as we see an increase in ‘urgent’ or distressed sales relating to borrowers struggling or unable to resume mortgage repayments…”
“The fourth phase will come once this selling pressure has worked through the system and prices lift again…”
The consensus seems to be that if you can buy now, then you should buy now.
Property listings are at a low, so now is a great time to be selling. This is a classic case of ‘demand exceeding supply’, keeping prices firm and in a lot of cases, exceeding sellers expectations.
WHAT DOES THE MARKET HOLD – TO BUY OR NOT TO BUY? by Jonzun Lee
Jonzun Lee is a trusted Brisbane real estate consultant and Licensed Real Estate Agent. Please contact Jonzun on 0418 885 708 for further information regarding your property needs.
Image: The Urban Developer
Source: The Urban Developer
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